A .

Most Important Characteristics or Features of Management | Management

This article provides information about the important characteristics or features of management!
1. Management is goal oriented process:
Management always aims at achieving the organisational objectives.
Page | 1 The functions and activities of manager lead to the achievement of organisational objectives; for example,
if the objective of a company is to sell 1000 computers then manager will plan the course of action,
motivate all the employees and organise all the resources keeping in mind the main target of selling 1000
computers.
2. Management is Pervasive:
Management is a universal phenomenon. The use of management is not restricted to business firms only it
is applicable in profit-making, non-profit-making, business or non-business organisations; even a
hospital, school, club and house has to be managed properly. Concept of management is used in the whole
3. Management is Multidimensional:
Management does not mean one single activity but it includes three main activities:
i. Management of work
ii. Management of people
iii. Management of operations
(a) Management of work:
All organisations are set up to perform some task or goal. Management activities aim at achieving goals
or tasks to be accomplished. The task or work depends upon the nature of Business for example, work to
be accomplished in a school is providing education, in hospital is to treat patient, in industry to
manufacture some product. Management makes sure that work is accomplished effectively and
efficiently.
(b) Management of people:
People refer to Human resources and Human resources are the most important assets of an organisation.
An organisation can win over competitor with efficient employees only because two organisations can
have same physical, technological and financial resources but not human resources. Management has to
get task accomplished through people only.
Managing people has two dimensions:
(i) Taking care of employee’s individual needs
(ii) Taking care of group of people
(c) Management of operations:
Operations refer to activities of production cycle such as buying inputs, converting them into semi-
finished goods, finished goods.
Management of operations concentrates on mixing management of work with management of people, i.e.,
deciding what work has to be done, how it has to be done and who will do it.
4. Management is a continuous process:
Management is a continuous or never ending function. All the functions of management are performed
continuously, for example planning, organising, staffing, directing and controlling are performed by all
the managers all the time. Sometimes, they are doing planning, then staffing or organising etc. Managers
perform ongoing series of functions continuously in the organisation.
5. Management is a group activity:
Management always refers to a group of people involved in managerial activities. The management
functions cannot be performed in isolation. Each individual performs his/her role at his/her status and
department, and then only management function can be executed.
Even the result of management affects every individual and every department of the organisation so it
always refers to a group effort and not the individual effort of one person.
 6. Management is a dynamic function:

Management has to make changes in goal, objectives and other activities according to changes taking
place in the environment. The external environment such as social, economical, technical and political
environment has great influence over the management.
As changes take place in these environments, same are implemented in organisation to survive in the
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competitive world.
7. Intangible:
Management function cannot be physically seen but its presence can be felt. The presence of management
can be felt by seeing the orderliness and coordination in the working environment. It is easier to feel the
presence of mismanagement as it leads to chaos and confusion in the organisation.
For example, if the inventory of finished products is increasing day by day it clearly indicates
mismanagement of marketing and sales.
8. Composite process:
Management consists of series of functions which must be performed in a proper sequence. These
functions are not independent of each other.
They are inter-dependent on each other. As the main functions of management are planning, organising,
staffing, directing and controlling; organising cannot be done without doing planning, similarly, directing
function cannot be executed without staffing and planning and it is difficult to control the activities of
employees without knowing the plan. All the functions inter-dependent on each other that is why
management is considered as a composite process of all these functions.
9. Balancing effectiveness and efficiency:
Effectiveness means achieving targets and objectives on time. Efficiency refers to optimum or best
utilisation of resources. Managements always try to balance both and get the work done successfully.
Only effectiveness and only efficiency is not enough for an organisation: a balance must be created in
both.effectiveness and efficiency
For example, if the target of an employee is to produce 100 units in one month time and achieving the
target by wasting resources and mishandling the machinery, will not be in the interest of organisation. On
the other hand, if the employee spends lot of time in handling the machine carefully and managing the
resources carefully and fails to complete the target on time, it will also not be in the interest of
organisation. Manager sees to it that this target is achieved on time-and with optimum use of resources.
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Characteristics of Management in Principles of Management
An analysis of the various definitions of management indicates that management has certain
characteristics.
What are the Characteristics of Management ?
The following are the salient characteristics of management.
Management aims at reaping rich results in economic terms:
Manager's primary task is to secure the productive performance through planning, direction and control. It
is expected of the management to bring into being the desired results. Rational utilisation of available
resources to maximise the profit is the economic function of a manager. Professional manager can prove
his administrative talent only by economising the resources and enhancing profit. According to Kimball -
"management is the art of applying the economic principles that underlie the control of men and materials
in the enterprise under consideration".
Management also implies skill and experience in getting things done through people: Management
involves doing the job through people. The economic function of earning profitable return cannot be
performed without enlisting co-operation and securing positive response from "people". Getting the
suitable type of people to execute the operations is the significant aspect of management. In the words of
Koontz and O'Donnell - "Management is the art of getting things done through people in formally
organised groups".
 Management is a process:Management is a process, function or activity. This process continues till the
objectives set by administration are actually achieved. "Management is a social process involving co-
ordination of human and material resources through the functions of planning, organising, staffing,
leading and controlling in order to accomplish stated objectives".
Management is a universal activity: Management is not applicable to business undertakings only. It is
applicable to political, social, religious and educational institutions also. Management is necessary when
Page | 3 group effort is required.
Management is a Science as well as an Art: Management is an art because there are definite principles of
management. It is also a science because by the application of these principles predetermined objectives
can be achieved.
Management is a Profession: Management is gradually becoming a profession because there are
established principles of management which are being applied in practice, and it involves specialised
training and is governed by ethical code arising out of its social obligations.
Management is an endeavour to achieve pre - determined objectives:
Management is concerned with directing and controlling of the various activities of the organisation to
attain the pre-determined objectives. Every managerial activity has certain objectives. In fact,
management deals particularly with the actual directing of human efforts.
Management is a group activity: Management comes into existence only when there is an group activity
towards a common objective. Management is always concerned with group efforts and not individual
efforts. To achieve the goals of an organisation management plans, organises, co-ordinates, directs and
controls the group effort.
Management is a system of authority: Authority means power to make others act in a predetermined
manner. Management formalises a standard set of rules and procedure to be followed by the subordinates
and ensures their compliance with the rules and regulations. Since management is a process of directing
men to perform a task, authority to extract the work from others is implied in the very concept of
management.
Management involves decision - making: Management implies making decisions regarding the
organisation and operation of business in its different dimensions. The success or failure of an
organisation can be judged by the quality of decisions taken by the managers. Therefore, decisions are the
key to the performance of a manager.
Management implies good leadership: A manager must have the ability to lead and get the desired course
of action from the subordinates. According to R. C. Davis - "management is the function of executive
leadership everywhere". Management of the high order implies the capacity of managers to influence the
behaviour of their subordinates.
Management is dynamic and not static: The principles of management are dynamic and not static. It has
to adopt itself according to social changes.
Management draws ideas and concepts from various disciplines: Management is an interdisciplinary
study. It draws ideas and concepts from various disciplines like economics, statistics, mathematics,
psychology, sociology, anthropology etc.
Management is Goal Oriented: Management is a purposeful activity. It is concerned with the achievement
of pre-determined objectives of an organisation.
Different Levels of Management:Management is needed at different levels of an organisation namely top
level, middle level and lower level.
Need of organisation:There is the need of an organisation for the success of management. Management
uses the organisation for achieving pre-determined objectives.
Management need not be owners:It is not necessary that managers are owners of the enterprise. In joint
stock companies, management and owners (capital) are different entities.
Management is intangible: It cannot be seen with the eyes. It is evidenced only by the quality of the
organisation and the results i.e., profits, increased productivity etc.
 B. Management Objectives: 10 Major Objectives of Management –
Explained!
Various Objectives of Management are:
1. Optimum utilisation of resources,
2. Growth and development of business,
Page | 4 3. Better quality goods,
4. Ensuring regular supply of goods,
5. Discipline and morale,
6. Mobilising best talent,
7. Promotion of research and development,
8. Minimise the element of risk,
9. Improving performance,
10. Planning for future
Today, management is playing a vital role in the progress and prosperity of a business enterprise.
The main objective of management is to run the enterprise smoothly. The profit making objective of
business is also to be taken care while undertaking various functions.
The broad purposes or objectives of the management are as follows—
1. Optimum utilisation of resources:
The most important objectives of the management are to use various resources of the enterprise in a most
economic way.
The proper use of men, materials, machines, and money will help a business to earn sufficient profits to
satisfy various interests i.e. proprietor, customers, employees and others. All these interests will be served
well only when physical resources of the business are properly utilised.
2. Growth and development of business:
By proper planning, organisation and direction etc., management leads a business to growth and
development on sound footing. It helps in profitable expansion of the business. It provides a sense of
security among the employers and employees.
3. Better quality goods:
The aim of the sound management has always been to produce the better quality products at minimum
cost. Thus, it tries to remove all types of wastages in the business.
4. Ensuring regular supply of goods:
Another objective of management is to ensure the regular supply of goods to the people. It checks the
artificial scarcity of goods in the market. Hence, it keeps the prices of goods within permissible limits.
5. Discipline and morale:
The management maintains the discipline and boosts the morale of the individuals by applying the
principles of decentralisation and delegation of authority. It motivates the employees through monetary
and non-monetary incentives. It helps in creating and maintaining better work culture.
6. Mobilising best talent:
The employment of experts in various fields will help in enhancing the efficiency of various factors of
production. There should be a proper environment which should encourage good persons to join the
enterprise. The better pay scales, proper amenities, future growth potentialities will attract more people in
joining a concern.
7. Promotion of research and development:
Management undertakes the research and development to take lead over its competitors and meet the
uncertainties of the future. Thus, it provides the benefits of latest research and technology to the society.
8. Minimise the element of risk:
Management involves the function of forecasting. Though the exact future can never be predicted yet on
the basis of previous experience and existing circumstances, management can minimise the element of
risk. Management always keeps its ears and eyes to the changing circumstances.
 9. Improving performance:
Management should aim at improving the performance of each and every factor of production. The
environment should be so congenial that workers are able to contribute their maximum to the enterprise.
The fixing of objectives of various factors of production will help them in improving their performance.
10. Planning for future:
Page | 5 Another important purpose of management is to prepare a prospective plan. No management should feel
satisfied with today’s work. Future plans should take into consideration what is to be done next. Future
performance will depend upon present planning. So, planning for future is essential to every organisation.
C .the significance or importance of management.
1. Encourages Initiative
Management encourages initiative. Initiative means to do the right thing at the right time without being
told or influenced by the superior. The employees should be encouraged to make their own plans and also
to implement these plans. Initiative gives satisfaction to employees and success to organisation.
2. Encourages Innovation
Management also encourages innovation in the organisation. Innovation brings new ideas, new
technology, new methods, new products, new services, etc. This makes the organisation more competitive
and efficient.
3. Facilitates growth and expansion
Management makes optimum utilisation of available resources. It reduces wastage and increase
efficiency. It encourages team work and motivates employees. It also reduces absenteeism and labour
turnover. All this results in growth, expansion and diversification of the organisation.
4. Improves life of workers
Management shares some of its profits with the workers. It provides the workers with good working
environment and conditions. It also gives the workers many financial and non-financial incentives. All
this improves the quality of life of the workers.
5. Improves corporate image
If the management is good, then the organisation will produce good quality goods and services. This will
improve the goodwill and corporate image of the organisation. A good corporate image brings many
added benefits to the organisation.
6. Motivates employees
Management motivates employees by providing financial and non-financial incentives. These incentives
increase the willingness and efficiency of the employees. This results in boosting productivity and
profitability of the organisation.
7. Optimum use of resources
Management brings together the available resources. It makes optimum (best) use of these resources. This
brings best results to the organisation.
8. Reduces wastage
Management reduces the wastage of human, material and financial resources. Wastage is reduced by
proper production planning and control. If wastage is reduced then productivity will increase.
9. Increases efficiency
Efficiency is the relationship between returns and cost. Management uses many techniques to increase
returns and to reduce costs. Higher efficiency brings many benefits to the organisation.
10. Improves relations
Management improves relations between individuals, groups, departments and between levels of
management. Better relations lead to better team work. Better team work brings success to the
organisation.
11. Reduces absenteeism and labour turnover
Absenteeism means the employee is absent without permission.
Labour Turnover means the employee leaves the organisation.
 Labour absenteeism and turnover increases the cost and causes many problems in the smooth functioning
of the organisation. Management uses different techniques to reduce absenteeism and labour turnover in
the organisation.
12. Encourages Team Work
Management encourages employees to work as a team. It develops a team spirit in the organisation. This
unity bring success to the organisation.
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What Are The Three Levels of Management?
The three levels of management provide a separation between the managerial positions of the
organization. The administrative rank of an organization worker determines the extent of authority, the
status enjoyed and the chain of command that can be controlled by the worker. There are three levels of
management found within an organization, where managers at these levels have different roles to perform
for the organization to have a smooth performance, and the levels are:
Top-Level Management/ Administrative level
Middle-Level Management/ Executory
Low-level Management/ Supervisory
The levels of Management and Their Functions are Discussed Below:
A.Top Level Management
The Top-Level Management is also referred to as the administrative level. They coordinate services and
are keen on planning. The top-level management is made up of the Board of Directors, the Chief
Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or
the President and the Vice President.
The Top level management controls the management of goals and policies and the ultimate source of
authority of the organization. They apply control and coordination of all the activities of the firm as they
organize the several departments of the enterprise which would include their budget, techniques, and
agendas.
The Top-level management is accountable to the shareholders for the performance of the organization.
There are several functions performed by the top-level management, but three of them are the most
important, and they are:
To lay down the policies and objective of the organization
Strategizing the plans of the enterprise and aligning competent managers to the departments or middle
level to carry them out.
Keeping the communication between the enterprise and the outside world.
B. Middle Level of Management
The Middle level Management is also referred to as the executory level, they are subordinates of the top-
level management and are responsible for the organization and direction of the low-level management.
They account for the top-level management for the activities of their departments.
The middle-level managers are semi- executives and are made up of the departmental managers and
branch manager. They could be divided into senior and junior middle-level management if the
organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the
efficiency of lower-level managers.
The middle-level managers are in charge of the employment and training of the lower levels. They are
also the communicators between the top level and the lower level as they transfer information, reports,
and other data of the enterprise to the top-level. Apart from these, there are three primary functions of the
middle-level management in the organization briefed below:
To carry out the plans of the organization according to policies and directives laid down by the top level
management.
To organize the division or departmental activities.
To be an inspiration or create motivation for junior managers to improve their efficiency.
 C.Lower Level of Management
The lower level Management is also referred to as the supervisory or the operative level of managers.
They oversee and direct the operative employees. They spend most of their time addressing the functions
of the firm, as instructed by the managers above them.
The lower level managers are the first line of managers as they feature at the base of operations, so they
are essential personnel that communicates the fundamental problems of the firm to the higher levels. This
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management level is made up of the foreman, the line boss, the shift boss, the section chief, the head
nurse, superintendents, and sergeants. They are the intermediary, they solve issues amidst the workers and
are responsible for the maintenance of appropriate relationship within the organization. They are also
responsible for training, supervising and directing the operative employees.
The lower level managers represent the management to the operative workers as they ensure discipline
and efficiency in the organization. The duty of inspiration and encouragement falls to them, as they
strengthened the workforce. They also organize the essential machines, tools and other materials required
by the employees to get their job done.
Briefed below are the primary functions of the lower-level management:
- To allocate tasks and responsibilities to the operative employees.
- To ensure quality and be responsible for the production quantity.
- To communicate the goals and objective of the firm laid down by the higher level
managers to the employees and also the suggestions, recommendations, appeals and information
- concerning employee problems to the higher level managers.
- To give instruction and guided direction to workers on their day to day jobs.
- To give periodic reports of the workers to the higher level managers.
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Levels of Management and their Functions

With the growing complexities of business, the process of management also become more complicated
and calls for a higher degree of skill and ability. Particularly in view of the technological features
influencing the size and the scale of modern enterprise, management cannot be a simple task that can be
performed by an individual or a few persons interested therein as proprietors.
As observed by Louis A. Allen,
it is humanly impossible for one individual to do justice to the multi various and complex demands of
both managing and operating the business.
Therefore, the managerial functions are assigned to different managerial personnel all along the
enterprise. Hence, there arise a hierarchy of management with authority and responsibility graded
according to functions arranged department-wise.
THREE LEVELS OF MANAGEMENT
The usual way of classifying the set up of any undertaking is:
Top Management
Middle Management, and
Lower Management,
1. TOP MANAGEMENT
Since majority of the large scale undertakings are organized as joint stock companies, the top level
management is made up of Board of Directors. However, in practice the Directors do not take part in the
day-to-day affairs of the enterprise. But the task is generally entrusted to the Managing Directors or
General Managers. They are called as Chief Executives and they are responsible to carry out the broad
policies formulated by the Board. However, the ultimate control rests with Directors.
This top level management is the policy making body responsible for the overall direction and success of
all the activities of the company.
Functions of the Top Management
The principal functions of.the top management can be outlined as follows:
1. Determination of Objectives
 It is the top level management which determines the broad objectives of the enterprise. Within the
framework of the Memorandum of the company, the Board must determine the goals of the enterprise.
The objectives may be either general or specific.
2. Formulation of Policies
For realizing the cherished goals of the company, the top management must also formulate the policies.
The objectives and policies must guide the activities of the company, the selection of policies also calls
Page | 8 for the Board’s judgement.
3. Long Range Planning and Strategy
Since long range plans and strategies are major decisions, they are also rested in the hands of the top level
management. If the long range planning proves faulty, the company shall find itself in serious financial
difficulties.
4. Organizing for Action
Setting up of the administrative organization of large companies with thousands of employees is a
complex problem and calls for greater caution and skill. Hence, this function also vests with the top
management. Responsibilities which are necessary to execute the policies must be assigned to different
employees and relationship among the jobs should also be clarified.
5. Developing of Major Resources
This function includes the finding out of the various ways and means for procuring the resources required
to put the plans into action. Resources also include physical resources such as machinery, tools, furniture,
equipment, building, etc.
6. Selecting Key Personnel
The managerial personnel not only dominate the success or failure of the existing policies but they are
key figures in formulating future plans. Right type of men must be selected and placed at the right places.
Hence, this function also vests with the top management.

7. Co-ordination and Controlling

Although the top management is primarily concerned with the future, it must maintain guiding influence
on the current activities. It must guide in the execution of plans through the organization with the
resources assembled. This calls for co-coordinating and controlling the operation.
2. MIDDLE LEVEL MANAGEMENT
The middle level management is concerned with the execution of the policies and plans evolved by the
top management. Therefore, the middle level management comprises of departmental heads and other
executives. Though the top management forms the head and brain of the enterprise, the personnel in the
middle management actually take part in the execution of the plans and experience the difficulties
involved in it.
In this connection Newman rightly remarked as follows:
Without good executive personnel, sound objectives and policies and a clear organization plan soon
become idle hopes and unrealistic aspirations; with good executive personnel, they provide the guidance
and the structure for a purposeful enterprise.
Functions of the Middle Management
The principal functions of the middle level management can be outlined as follows:
1. Middle level management interprets the policies of the company.
2. It is the responsibility of the Middle Management to prepare organizational set up in their department.
3. They issue orders to the subordinates and others in their department,
4. Middle level management motivate the personnel for higher productivity.
5. Collecting reports and other information about the work turned out in their respective departments, and
6. Providing information and assisting the top management in revising the plans to secure better
performance.
3. LOWER LEVEL MANAGEMENT
This term is applied to subordinate departmental heads, foremen, office superintendents, supervisors, etc.
The personnel in the lower level management come in direct contact with the workers. They actually
 carry out the operations as per schedule. Hence, they are also designated as ‘operating management’.
They provide the essential link between the worker and the management. In fact, the efficiency of the
whole organization depends on the efficiency of the lower management.
Functions of the Lower Management
The important functions of the personnel in lower management can be summed up as follows:
1. Executing of the work entrusted to them,
Page | 9 2. Maintaining of the standard, quality and workmanship of the product,
3. Eliminating wastage of material, time, etc.,
4. Maintaining strict discipline amongst the workers,
5. Preserving the morale of the workers, and
6. Providing instructions and other information to the workers and guiding them while in action.

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D .Management Levels and Type
Top-Level Management
Top-level managers determine broad strategic strokes for the organization in general, and focus on the big
picture.
Vertically ordering managerial functions allows managers at different tiers to focus on different ranges or
scopes of organizational behavior and strategy.
One of the weaknesses of this type of managerial organization is that it can polarize power and salary, as
well as create a rigid structure that reduces information flow.
Top-level managers (such as CEOs) tend to be big-picture strategic thinkers with a substantial amount of
experience in the industry and/or function they manage.
The executive team focuses on determining long-term strategy, strategic alliances, large financial
decisions, and management of stakeholders (and the board of directors).
hierarchical: Ranked in some order, often order of importance or power.
Some views on management revolve around vertical differentiation, or creating an hierarchical view of
managers. This is useful to visualize in a chart, where top management is logically at the top, overseeing
the entire organization. Middle managers are in the middle, acting as a bridge between upper management
and certain work groups. Lower managers are task or process oriented, managing functional specialists
and projects.
The Pros and Cons of Vertical Thinking
The primary advantage of this perspective is that different management professionals can view the
organization from different angles. Top-level managers tend to focus mostly on strategy and bigger
picture thinking, while middle managers focus on aligning a large work group towards shared objectives.
Frontline management thrives in pursuing operational efficiency, hiring on entry and mid-level talent, and
assessing performance.
On the downside, this tends to consolidate power at the top of the organization, of building steep
corporate ladders and often heavily polarized income. It can also create one-way information flows,
where top management creates plans without understanding the core processes of the organization.
Managing organizations vertically can reduce flexibility and agility.
This is an organizational structure example which cleanly demonstrates a vertical delegation of
managerial responsibilities. The higher the level of management, the broader their scope. This means that
lower level managers have a high degree of detail-orientation.
FedEx Organizational Structure: This is an organizational structure example that cleanly demonstrates a
vertical delegation of managerial responsibilities. The higher the level of management, the broader their
scope. This means that lower level managers have a high degree of detail-orientation.
Top-level Management
Core Characteristics
 High level managers tend to have a substantial amount of experience, ideally across a wide variety of
functions. Many high-level managers become part of an executive team by mastering their functional
disciplines across various roles, becoming the Chief Operations Officer (COO), Chief Marketing Officer
(CMO), Chief Technology Officer (CIO or CTO), Chief Financial Officer (CFO) or Chief Executive
Officer (CEO).
Top management teams are also often industry experts, having a close association with the long term
Page | 10 trajectory of the businesses they operate in. They often benefit from being charismatic, powerful
communicators with a strong sense of accountability, confidence, integrity, and a comfort with risk.
Responsibilities
The primary role of the executive team, or the top-level managers, is to look at the organization as a
whole and derive broad strategic plans. Company policies, substantial financial investments, strategic
alliances, discussions with the board, stakeholder management, and other top-level managerial tasks are
often high-risk high return decision-making initiatives in nature. Top-level management roles are
therefore often high stress and high influence roles within the organization.
Middle-Level Management
Middle management is the intermediate management level accountable to top management and
responsible for leading lower level managers.
LEARNING OBJECTIVES
Recognize the specific responsibilities and job functions often assigned to middle-level management
professionals
Middle management is at the center of a hierarchical organization, subordinate to the senior management
but above the lowest levels of operational staff.
Middle managers are accountable to top management for their department’s function. They provide
guidance to lower-level managers and inspire them to perform better.
Middle-management functions generally revolve around enabling teams of workers to perform effectively
and efficiently and reporting these performance indicators to upper management.
Middle management may be reduced in organizations as a result of reorganization. Such changes can take
the form of downsizing, ” delayering,” and outsourcing.
mentoring: Acting as a teacher or guide; providing advice and direction for one less experienced.
delayering: A planned reduction in the number of layers of a management hierarchy.
Defining Middle Management
Most organizations have three management levels: first-level, middle-level, and top-level managers.
These managers are classified according to a hierarchy of authority and perform different tasks. In many
organizations, the number of managers in each level gives the organization a pyramid structure.
Middle management is the intermediate leadership level of a hierarchical organization, being subordinate
to the senior management but above the lowest levels of operational staff. For example, operational
supervisors may be considered middle management; they may also be categorized as non-management
staff, depending upon the policy of the particular organization.
Four-tier pyramid: Workers, middle managers, senior managers, and executives: This figure illustrates the
hierarchy of management within an IT department. Note that middle management is tasked with (1) their
tier of technical skills, i.e. information management systems, as well as (2) communication of system
efficacy upward to senior managers and (3) delegating tasks downward to workers.
Middle-Management Roles
Middle-level managers can include general managers, branch managers, and department managers. They
are accountable to the top-level management for their department’s function, and they devote more time
to organizational and directional functions than upper management. A middle manager’s role may
emphasize:
Executing organizational plans in conformance with the company’s policies and the objectives of the top
management;
Defining and discussing information and policies from top management to lower management;
 Most importantly, inspiring and providing guidance to lower-level managers to assist them in
performance improvement and accomplishment of business objectives.
Middle managers may also communicate upward by offering suggestions and feedback to top managers.
Because middle managers are more involved in the day-to-day workings of a company, they can provide
valuable information to top managers that will help them improve the organization’s performance using a
broader, more strategic view.
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Middle-Management Functions
Middle managers’ roles may include several tasks depending on their department. Some of their functions
are as follows:
Designing and implementing effective group work and information systems
Defining and monitoring group-level performance indicators
Diagnosing and resolving problems within and among work groups
Designing and implementing reward systems
Supporting cooperative behavior
Reporting performance statistics up the chain of command and, when applicable, recommending strategic
changes
Because middle managers work with both top-level managers and first-level managers, middle managers
tend to have excellent interpersonal skills relating to communication, motivation, and mentoring.
Leadership skills are also important in delegating tasks to first-level managers.
Middle management may be reduced in organizations as a result of reorganization. Such changes include
downsizing, ‘delayering’ (reducing the number of management levels), and outsourcing. The changes
may occur in an effort to reduce costs (as middle management is commonly paid more than junior staff)
or to make the organization flatter, which empowers employees, leaving the organization more innovative
and flexible.
Frontline Management
Frontline management balances functional expertise with strong interpersonal skills to optimize specific
operational processes.
Recognize the core competencies and common responsibilities of frontline management
Management is sometimes viewed through a hierarchical frame, dividing management groups by
frontline, middle, and upper levels.
Separating management vertically allows different management groups to focus on different
organizational scopes. Frontline managers are more zoomed in, whereas executives are more zoomed out.
Frontline managers often balance a functional or technical understanding of those who report to them
with the interpersonal skills of a manager.
This form of leadership requires a strong ability to communicate, mentor, train, hire, organize, optimize
processes, and prioritize.
One perspective that can be taken on management is a hierarchical view. Under this perspective,
managers are responsible for different degrees of organizational scope, which can be visualized as having
responsibility over a larger volume of processes and people. When illustrating this concept, the lower
level managers are at the bottom of the chart (often shaped something like a pyramid) while the
executives are at the top.
This is a simple example of an organizational chart, in this case the U.S. Coast Guard. This is a
particularly good example of hierarchical thinking, as militarizes often function with a high degree of
hierarchical authority.
USCG Organization Chart: This is a simple example of an organizational chart, in this case for the U.S.
Coast Guard. This is a particularly good example of hierarchical thinking, as the military functions with a
high degree of hierarchical authority.
Why Differentiate Management
 When looking at different levels of management from a vertical frame, the value of separating
management this way essentially allows different amounts of scope. The expression ‘seeing the forest for
the trees’ is a particularly useful anecdote for the purpose of the upper managerial teams.
The objective at the top of the hierarchy is to consider mid and long term strategy for the organization at
large. Middle managers usually take a more specific aspect of this larger strategy, and ensure a more
detailed implementation. Managers on the front line focus almost exclusively on effective execution, and
Page | 12 are often much more short-term oriented. This allows each class of management to narrow their focus
enough for the work to actually be manageable.
Front Line Management
At the front line, managers are often highly skilled and even functional specialists. A front line manager is
best positioned when they focus on controlling and directing specific employees (think in terms of
supervisors, team leaders, line managers, and project managers).
Skill Sets
A front line manager needs to have two distinctive skill sets: the interpersonal skills to manage people as
well as the technical expertise to be among the front lines actively executing functional tasks. As a result,
frontline managers are often highly valuable team members with the versatility to contribute in various
ways.
Core skill sets for frontline managers can change depending on what function they are overseeing.
However, on the interpersonal side they should be effective at:
Communicating
Observing and actively listening
Giving and receiving feedback
Prioritizing
Aligning resources
Organizing processes and tasks
Responsibilities
Responsibilities of a frontline manager will therefore come in two flavors. The first is the expertise
required to do whatever it is they are managing. If we are talking about an accounting manager, they must
be able to balance the books and understand enough of everyone’s specific function to fill the gaps. If it is
a frontline manager on an automobile manufacturing facility, the manager should be aware of how to run
most of the machines and how to assess the productivity of different positions (ideally from experience).
On the managerial side, frontline managers are often tasked with hiring, assessing performance, providing
feedback, delegating functional tasks, identifying gaps, maximizing efficiency, scheduling, and aligning
teams. As the primary point of contact for most employees, frontline managers must be careful listeners
capable of understanding employee needs, removing blockers, and optimizing performance.
Functional vs. General Management
General managers focus on the entire business, while functional managers specialize in a particular unit or
department.
Differentiate between functional management and general management from a business perspective
General management focuses on the entire business as a whole (a top-down organizational view).
A functional manager is a person who has management authority over an organizational unit—such as a
department—within a business, company, or other organization. Under functional management, direct
reports reside in the same department.
A general manager is responsible for all areas and oversees all of the firm’s functions and day-to-day
business operations. The general manager has to communicate with all departments to make sure the
organization performs well.
General management and functional management have many similarities; the primary difference is that a
functional manager focuses on one facet of an organization, while the general manager must keep
everything in view.
staffing: The practice of hiring and firing staff.
delegating: Assigning a task to somebody, usually a subordinate.
 Functional management and general management represent two differing responsibility sets with an
organization. Functional managers are most common in larger organizations with many moving parts,
where different business functions are led by managers within those respective fields (i.e. marketing,
finance, etc.). General management is more common in smaller, more versatile, environments where the
general manager can actively engage in every facet of the business
Functional Management
Page | 13 Besides the heads of a firm’s product and/or geographic units, the company’s top management team
typically consists of several functional heads (such as the chief financial officer, the chief operating
officer, and the chief strategy officer). A functional manager is a person who has management authority
over an organizational unit—such as a department—within a business, company, or other organization.
Functional managers have ongoing responsibilities and are not usually directly affiliated with project
teams, other than ensuring that goals and objectives are aligned with the organization’s overall strategy
and vision.
Functional vs. general management: This chart shows a particular organizational hierarchy employing
both general and functional management. Each functional manager is in control of a particular area of
expertise—e.g., operations or policy and planning—and the general manager supervises all the functional
managers.
General Management
General management focuses on the entire business as a whole. General management duties and
responsibilities include formulating policies, managing daily operations, and planning the use of materials
and human resources. However, general managers are too diverse and broad in scope to be classified in
any one functional area of management or administration such as personnel, purchasing, or administrative
services.
General managers include owners and managers who head small-business establishments with duties that
are primarily managerial. Most commonly, the term general manager refers to any executive who has
overall responsibility for managing both the revenue and cost elements of a company’s income statement.
This means that a general manager usually oversees most or all of the firm’s marketing and sales
functions, as well as the day-to-day operations of the business. Frequently, the general manager is
responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making to
attain profitable results for an organization.
While both general and functional management involve similar skills (interpersonal skills,
communication, multitasking, etc.), the critical difference is that a functional manager often “zooms in” to
one particular aspect of a broader operational paradigm. The general manager must be more of a jack-of-
all-trades, understanding enough about various different gears in the machine to ensure it is running
properly.
McDonald’s offers an example of ways to understand both types of management. McDonald’s has
functional managers at the corporate level who discuss advertising strategies, assess financials, discuss
expansion, and so forth. Meanwhile, general managers run individual stores, focusing on the quality of
service, operational efficiency, local tastes, etc. at their store.
Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-Benefit
Managers must adjust their management style to fit the type of organization.
Apply managerial styles within different business types and to accomplish different objectives
Key Points
For-profit corporations are administered to earn profit to increase the wealth of their owners. Managers in
for-profit organizations focus on the system and production.
A non-profit organization must dedicate its operations to achieve a charitable or educational goal. A
manager must ensure that the organization’s operations are solely dedicated to achieving that goal. A
manager of such an organization is not focused on generating profit.
Mutual- benefit corporations are usually formed for non-profit purposes, such as managing a condo
association. The managers of such an organization are concerned about improvements in human and
environmental well-being rather than maximizing profits for external shareholders.
 While all types of organizations are tasked with managing resources efficiently, for-profits and non-
profits have differentiated management styles, in many instances, because of differences in motivation
(e.g., non-profits must rely on fewer monetary rewards).
mutual-benefit non-profit corporation: A type of nonprofit corporation chartered by a state government
that exists to serve its members.
non-profit: An organization that exists for reasons other than to make a profit, such as a charitable,
Page | 14 educational, or service organization.
for-profit: An organization engaged in the trade of goods, services, or both to customers with the goal of
earning profit to increase the wealth of the business’s owners.
Management style is influenced by the goals and purpose of the organization, which are in large part
established by the type of business being managed.
Management in For-Profit Organizations
A for-profit business is an organization engaged in the trade of goods, services, or both to customers with
the goal of earning profit to increase the wealth of the business’s owners. Managers have to direct their
efforts towards achieving that goal.
Management in Non-Profit Organizations
In contrast, a non-profit organization is legally prohibited from making a profit for owners. All income
generated by a non-profit’s activities must be used to achieve the charitable or educational purpose
defined in the organization’s bylaws. The managers of non-profits must always be aware of that charitable
purpose and ensure that the organization’s operations conform to those purposes.
One component of nonprofit management that contrasts with the for-profit model is the existence of
volunteer workers. Non-profits’ lack of free-flowing capital means they rarely have the resources to staff
the organization sufficiently. In this scenario, managers often reach out to individuals passionate about the
organization’s mission to contribute through monetary donations or volunteer hours. Managing volunteers
is different than managing employees, as there is essentially no contract or agreement governing the
relationship. This means managers must motivate by community-building and a sense of shared
accomplishment.
Management in Mutual-Benefit Organizations
A mutual-benefit non-profit corporation can be non-profit or for profit. However, mutual benefit
corporations are usually formed for nonprofit purposes like managing a condo association, a downtown
business district, or a homeowners association. A mutual is therefore owned by its members and run for
their benefit; it has no external shareholders to pay in the form of dividends, and as such does not usually
seek to generate large profits or capital gains. Managers in mutual benefit organizations are, therefore,
more concerned about improvements in human and environmental well-being than maximizing profits for
external shareholders.
Comparing Management in For-Profit, Non-Profit, and Mutual-Benefit Organizations
The management of all three types of organizations (for-profit, non-profit, and mutual-benefit) may have
similar responsibilities, such as drafting a budget and ensuring that the organization generates enough
revenue to fulfill its operational needs. Management will need to plan, organize, direct and control the
business’s activities. All three types require that management motivate employees.
Management processes: Management styles vary among types of organizations, but they still follow the
main steps of planning, organizing, directing, and controlling.
However, the approach managers take will vary based on the type of organization. For example, a
manager of a for-profit company may be able to motivate employees through bonuses for sales targets or
profit sharing. This strategy cannot work for a non-profit or mutual-benefit corporation. In those cases,
management must either appeal to the employees’ sense of duty to the mission of the non-profit or to the
benefit they would receive from a well-run mutual-benefit corporation. While every organization
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 E. Managerial Roles
In 1916 Henri Fayol was first to define the manager. Dr. Henry Mintzberg wanted to find out that if Henri
Fayol’s 50-year-old definition of manager and management definition still stood in the 60s and 70s. So he
conducted a research base on the structured observation method.
They all were from 5 different types of organization; a consulting firm, a school, a technology firm, a
Page | 15 consumer goods manufacturer and a hospital. He kept track of all there activates and analyzed it.
His research report titled “MANAGERIAL WORK: ANALYSIS FROM OBSERVATION” was for his
doctoral dissertation, at the Sloan School of Management, M. I. T.
In January 1971 he submitted the report and it was accepted and published in October 1971.
In his research, Mintzberg said that what managers do can best be described by looking at the roles they
play at work.
The term management role refers to specific categories of managerial behavior.
He identified 10 identified roles of a manager played in an organization which falls into 3 basic
categories:
Interpersonal roles,
Informational roles.
Decisional roles.
Interpersonal Roles
These roles relate to the manager’s behavior that focuses on interpersonal contact Interpersonal roles are
roles that involve people (subordinates and persons outside the organization) and other duties that are
ceremonial and symbolic.
The three interpersonal roles include being a;
Figurehead.
Leader.
Liaison.
According to Dr. Henry Mintzberg, These three interpersonal roles derive from the authority and status
associated with managers’ post.
1. Figurehead
The figurehead performs symbolic legal or social duties. All social, inspiration, legal and ceremonial
obligations.
In this light, the manager is seen as a symbol of status and authority.
2. Leader
The Leader builds relationships with employees and communicates with, motivates, and coaches them.
Duties are at the heart of the manager-subordinate relationship and include structuring and motivating
subordinates, overseeing their progress, promoting and encouraging their development, and balancing
effectiveness.
3. Liaison
The liaison maintains a network of contacts outside the work unit to obtain information.
Describes the information and communication obligations of a manager. One must network and engage in
information exchange to gain access to knowledge bases.
Informational Roles
Informational roles involve receiving, collecting, and disseminating information.
The 3 informational roles include;
Monitor,
Disseminator, and
Spokesperson.
These informational roles are all about receiving and transmitting information so that managers can serve
as the nerve centers of their organization. The informational roles are;
4. Monitor
The monitor seeks internal and external information about issues that can affect the organization.
 Duties include assessing internal operations, a department’s success and the problems and opportunities
which may arise.
All the information gained in this capacity must be stored and maintained
5. Disseminator
The disseminator transmits information internally that is obtained from either internal or external sources.
Page | 16 Highlights factual or value-based external views into the organization and to subordinates. This requires
both filtering and delegation skills.
6. Spokesperson
The spokesperson transmits information about the organization to outsiders. Serves in a PR capacity by
informing and lobbying others to keep key stakeholders updated about the operations of the organization.
Decisional Roles
Decisional roles revolved around making choices. Managers’ interpersonal role leads to decisional roles.
Information and resources that are collected and gathered by the interpersonal make a manager able to
play the decisional roles or responsibilities that he is obligated to.
The four decisional roles include being an entrepreneur, disturbance handler, resource allocator, and
negotiator.
7. Entrepreneur
The entrepreneur acts as an initiator, designer, and encourage change and innovation.
Roles encourage managers to create improvement projects and work to delegate, empower and supervise
teams in the development process.
8. Disturbance handler
The disturbance handler takes corrective action when the organization faces important, unexpected
difficulties.
A generalist role that takes charge when an organization is unexpectedly upset or transformed and
requires calming and support.
9. Resource allocator
The resource allocator distributes resources of all types, including time, funding, equipment, and human
resources.
Describes the responsibility of allocating and overseeing financial, material and personnel resources.
10. Negotiator
The negotiator represents the organization in major negotiations affecting the manager’s areas of
responsibility is a specific task which is integral for the spokesman, figurehead, and resource allocator
roles.
If we analyze Mintzberg’s finds we can say that authority and status derive the interpersonal roles,
interpersonal makes it necessary for a manager to play informational roles. And that enables a manager to
make a decision.
These ten roles of a manager stated by Mintzberg; comes with many responsibilities. Informing,
Connecting, and orders require a manager to able to adapt to the situation and controlling it in a balanced
way.
:::::::
Three Types of Managerial Skills
Robert Katz identifies three types of skills that are essential for a successful management process:
Technical skills,
Conceptual skills and
Human or interpersonal management skills.
Technical Skills as One Part of Management Skills
As the name of these skills tells us, they give the manager’s knowledge and ability to use different
techniques to achieve what they want to achieve. Technical skills are not related only for
 machines,production tools or other equipment, but also they are skills that will be required to increase
sales, design different types of products and services, market the products and services, etc.
For example, let’s take an individual who works in the sales department and has highly developed sales
skills achieved through education and experience in his department or the same departments in different
organizations. Because of these skills that he possesses, this person can be a perfect solution to become a
sales manager. This is the best solution because he has excellent technical skills related to the sales
Page | 17 department.
On the other hand, the person who becomes sales manager will start to build his next type of required
skills. It is because if his task until now was only to work with the customers as a sales representative,
now he will need to work with employees in the sales department in addition to the work with customers.
Technical skills are most important for first-level managers. Whet it comes to the top managers, these
skills are not something with high significance level. As we go through a hierarchy from the bottom to
higher levels, the technical skills lose their importance.
Conceptual Skills
Conceptual skills present knowledge or ability of a manager for more abstract thinking. That means he
can easily see the whole through analysis and diagnosis of different states. In such a way they can predict
the future of the business or department as a whole.
Why managers need these skills?
As a first, a company includes more business elements or functions as selling, marketing, finance,
production, etc. All these business elements have different goals even completely opposed goals. Think
about marketing and production as a business function and their specific goals. You’ll see the essential
difference. The conceptual skills will help managers to look outside their department’s goals. So, they
will make decisions that will satisfy overall business goals.
Conceptual skills are vital for top managers, less critical for mid-level managers, and not required for
first-level managers. As we go from the bottom of the managerial hierarchy to the top, the importance of
these skills will rise.
Human or Interpersonal Managerial Skills
Human or interpersonal management skills present a manager’s knowledge and ability to work with
people. One of the most critical management tasks is to work with people. Without people, there will not
be a need for the existence of management and managers.
These skills will enable managers to become leaders and motivate employees for better accomplishments.
Also, they will help them to make more effective use of human potential in the company. Simply, they are
the essential skills for managers.
Interpersonal management skills are essential for all hierarchical levels in the company.
Are There More Management Skills
These are the three necessary skills required for successful management as a process. Some authors also
mention other skills related to management skills. But, when I think about, they are simply part of these
three types of primary skills.
Let’s take the example of controlling skills. The controlling can’t be a skill, but rather a process, or one of
the managerial functions. Managers are controlling their employees through their interpersonal
managerial skills that we already described. Other additional skills that I find in theory are decision-
making skills. Again, decision making is a process and not the skill. When we have conceptual skills, we
will make a better decision. Furthermore, when we have technical skills, we will make a better technical
decision. I think that the primary skills all managers will need are skills explained as technical,
conceptual, and interpersonal managerial skills.
In the end, I want to note something about managerial skills and business potential energy. Better
management skills in your company will produce more considerable business potential energy. So, these
three types of skills are in the category of business elements that can increase your business potential
energy.
::::::::
 F .Types of Management Skills
According to American social and organizational psychologist Robert Katz, the three basic types of
management skills include:
1. Technical Skills
Page | 18 Technical skills involve skills that give the managers the ability and the knowledge to use a variety of
techniques to achieve their objectives. These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills needed to boost sales, design different types
of products and services, and market the services and the products.
2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability for abstract thinking and
formulating ideas. The manager is able to see an entire concept, analyze and diagnose a problem, and find
creative solutions. This helps the manager to effectively predict hurdles their department or the business
as a whole may face.
3. Human or Interpersonal Skills
The human or the interpersonal skills are the skills that present the managers’ ability to interact, work or
relate effectively with people. These skills enable the managers to make use of human potential in the
company and motivate the employees for better results.
There is a wide range of skills that management should possess to run an organization effectively and
efficiently. The following are six essential management skills that any manager ought to possess for them
to perform their duties:
1. Planning
Planning is a vital aspect within an organization. Planning is one’s ability to organize activities in line
with set guidelines while still remaining within the limits of the available resources such as time, money,
and labor. It is also the process of formulating a set of actions or one or more strategies to pursue and
achieve certain goals or objectives with the available resources. The planning process includes identifying
and setting achievable goals, developing necessary strategies, and outlining the tasks and schedules on
how to achieve the set goals. Without a good plan, little can be achieved.
2. Communication
Possessing great communication skills is crucial for a manager. It can determine how well information is
shared throughout a team, ensuring that the group acts as a unified workforce. How well a manager
communicates with the rest of his/her team also determines how well outlined procedures can be
followed, how well the tasks and activities can be completed, and thus, how successful an organization
will be.
Communication involves the flow of information within the organization, whether formal or informal,
verbal or written, vertical or horizontal, and it facilitates smooth functioning of the organization. Clearly
established communication channels in an organization allow the manager to collaborate with the team,
prevent conflicts, and resolve issues as they arise. A manager with good communication skills can relate
well with the employees and thus, be able to achieve the company’s set goals and objectives easily.
3. Decision-making
Another vital management skill is decision-making. Managers make numerous decisions, whether
knowingly or not, and making decisions is a key component in a manager’s success. Making proper and
right decisions results in the success of the organization, while poor or bad decisions may lead to failure
or poor performance. For the organization to run effectively and smoothly, clear and right decisions
should be made. A manager must be accountable for every decision that they make and also be willing to
take responsibility for the results of their decisions. A good manager needs to possess great decision-
making skills, as it often dictates his/her success in achieving organizational objectives.
4. Delegation
Delegation is another key management skill. Delegation is the act of passing on work-related tasks and/or
authorities to other employees or subordinates. It involves the process of allowing your tasks or those of
 your employees to be re-assigned or re-allocated to other employees depending on current workloads. A
manager with good delegation skills is able to effectively and efficiently re-assign tasks and give
authority to the right employees. When delegation is carried out effectively, it helps facilitate quick and
easy results.
Delegation helps the manager to avoid wastage of time, optimizes productivity, and ensures responsibility
and accountability on the part of employees. Every manager must have good delegation abilities to
Page | 19 achieve optimal results and accomplish the required productivity results.
5. Problem-solving
Problem-solving is another essential skill. A good manager must have the ability to tackle and solve the
frequent problems that can arise in a typical workday. Problem-solving in management involves
identifying a certain problem or situation and then finding the best way to handle the problem and get the
best solution. It is the ability to sort things out even when the prevailing conditions are not right. When it
is clear that a manager has great problem-solving skills, it differentiates him/her from the rest of the team
and gives subordinates confidence in his/her managerial skills.
6. Motivating
The ability to motivate is another important skill in an organization. Motivation helps bring forth a
desired behavior or response from the employees or certain stakeholders. There are numerous motivation
tactics that managers can use, and choosing the right ones can depend on characteristics such as company
and team culture, team personalities, and more. There are two primary types of motivation that a manager
can use. These are intrinsic and extrinsic motivation.
G. UNIVERSALITY OF MANAGEMENT
he universality of management is an important concept to consider in modern management thought. When
describing management as universal, we refer to the widespread practice of management in all types of
organizations. As noted before, one cannot bring a group of people together, regardless of the nature of
the endeavor, and expect them to accomplish objectives unless their efforts are coordinated. Among other
things, plans must be outlined, task identified, authority relationship specified, lines of communication
established, and leadership excercised. Management, therefore, is required before any organization can
expect to be effective.
Although management is universal, we should not assume that all managers are the same; if, for no other
reason, diffrences exist because no two individuals are alike. However, all managers perform broad
groups of duties that are smiliar. These groups of duties are the functions of planning, organizing,
actuating, and controlling. Although the responsibilities associated with performing the functions vary
among levels of authority, managers at all material resouces. Since the management functions must be
performed to some degree in order to achieve dsdired goals, we can say that there is, indeed, a
universality of management.
The universal nature of management also implies that managerial skills are transferable from one type of
organization to another. If this is the case, a manager should expect to exverience few problems in
moving from one industry to another, from the military to business, from business to government, from
education to business, or from one department to another within the same organization. There are
certainly persons who have been succesful in making such moves. Other, however, have failed. For
example. Laurence J.Peter cites numerous cases that show promotions in an organization often
accompliesh little beyond pointing out the incompetencies of those persons who have been promoted.
Although proven perfermance in one management position is no guarantee of success in another, various
issues should still be explored. First, managerial success depends on how well managers do their jobs -
that is, how well they perform the management functions in meeting their responsbilities. Rememeber that
manager is not a narrow technical specialist, but a person who must plan, organize, actuate, and control.
Again, this does not overlook the need for technical information in the decision-making process.
Technological, social, political, and economic factors must be considered in most decisions. At the same
time, managers must recognize the importance of balancing the needs and goals various organizational
members. This, in turn, requires an ability to understand the overall nature of an organization's operations.
 A second factor to consider conserns to need for flexibility when adjusting to a new organizational
environment. All organizations have uniqe differences. Thus, for managers to be successful in moving
from one organization to another, they must be capable of adapting to change. In addition, initiative,
motivation to achieve, and the courage to accept and overcome setbacks are important personal
characteristics. When moving from large to smaller organizations, these latter characteristics appear to be
especially critical. Perhaps this is due to the fact that smaller organizations do not have the technical
Page | 20 specialists and staff support groups found in their large counterparts. In any event, career movements
from small organizations to larger ones seem to present fewer problems.
1. Organizations and their objectives
Management and the organization : organization viewed as a system. Characteristics of system design.
Organization - an open system. Environmental influences. Framework of the business organization.
Nature and importance of objectives : Purpose and objectives. Objectives and goals. Hierarchy of
objectives or means-and objectives. Classification of objectives. Difficulities in classifying objectives.
Poltical problems dealing with objectives.
2. The formal organization
The organizating work of managers. From simple to complex organizations. The formal organization:
Max Weber and bureacracy. The role of people in the bureaucracy. Basic organizing concepts. The nature
of authority. Compliance with authority. Responbility :Obligation. Role of moral codes.
3. The design of organization
Division of labor: division of labor and reduced productivity. Physiological and psychological limitations.
Guides to departmentation: Departmentation by business functions. Departmentation by process.
Departmentation by geographic area. Departmentation by product and/or service. Departmentation by
costumer. Departmentation by matrix organization design. Grouping of departments: Parallel
departmentation. The balance approach. The scalar concept. Unity of command. Span of management:
Effects of changes on the span of management. Some final comments on the span of management.
Organizational design and boundary-spanning roles.
4. Authority relationships
Delegating authority for operating and management task: Barriers to delegation. Overcoming barries to
delegation. Line authority. Staff authority: Scope of staff authority. Using staff authority wisely.
Functional authority. Centralization and decentralization of authority: Examples of centralization-
decentralization. Contingency considerations in centralization-decentralization. Impact of environment
and computer technology on centralization.
To advance the development of a general theory, fayol suggeted that management should be studied from
a scientific approach. In this sense, scientific inquiry would follow the guidelines identified by Rene
Descartsesin his Discourse on Method (1637) and would be used to determine.
What exist in the real world, as shown by observation and experience.
Why a given phenomenon behaves as it does.
How to classify data related to a real world phenomenom.
Through scientific inquiry, a body of knowledge can be developed that helps explain relationship among
various factors in given situations. Thus, the goal scientific inquiry is to provide an understanding of
certain events in nature so as to better predict their possible impact on future courses of action.
With some changes, the steps of the scientific method have been employed in managerial problem solving
and are generally expressed in the following manner:
Define, outline, and state the problem that is to be solved.
Review the literature on the problem area and discuss it with informed persons so as to investigate
thoroughly all facts that have a bearing on the problem.
Develop a statement of hypothesis or a tentative solution to the problem.
Collect, organize, and classify all relevant data.
Analyze the data as related to the problem and hypothesis.
Set forth the findings, conslusions, and recommendations that flow from the analysis of data.
 implement recommendations and evaluate results to determine the success of the solution.
Because of the human element in organizations, management practioners and scholars have found it
difficult to apply the steps of the scientific method as precisely as researches in the physical and life
sciences. It is hoped, however, that this difficulty will not retard the use of a scientific approach to the
study and practice of management. As stated by Koontz, O'Donnell, and Weihrich, " A scientific
approach to management cannot wait until as exact science of management is developed." These an other
Page | 21 scholar note that a considerable body of management knowledge has been derived from experience and
observation. It would be unfortunate, therefore, to curtail the advancement and refinement of management
theory by waiting until the guidlines included in this body of knowledge could be validated scientific
cally.
Science in Management
The evolving applications of science in management Sice history points out many important managerial
contributions through the ages, it is strange that serious efforts to study management were so long in
coming. For example, major scientific discoveries were made in the life and physical science 100 to 400
years before Fayol's writings. But, it was about the time of Fayol and F.W. Taylor (who was working on a
scientific approach to management in the United States) before management was considered more than
just good common sense combined witth some degree of technical competence. Apparently, it took a
research-oriented manager like Fayol with a background in mining, engineering, and geology to recognice
the importance of science in developing a better understanding of management.
Management principles One way to classify portions of current management knowledge is through the
use of principles. Regarded as general statement of truth concerning management, principles identify
cause and effect relationships that can assist in predicting the result(s) of particular actions. By suggesting
possible results of alternative courses of action, principle also provide guides to thought and action.
Consequently, through an application of principles, managers can avoid many of the costly mistake
associated with management by trial and error.
Many of the principles of management included in Appendix A have been followed by practicing
managers in all types of organizations. Yet, groups of both practitioners and scholars still disagree on the
validity of principles. Others note that the diverse environments within which management is practiced
have become too complex for principles to be used in the development of a general theory of
management. As much as anything, these differing opinions may point out the benefits of a contingency
approach to management where environmental conditions and managerial judgment are of utmost
importance in determining the applicability of principles to given situations.
To summarize, rigorous investigations is required to develop valid principles. We know that a principle in
the physical sciences is meaningful only when developed through the steps of conceptualizing,
hypothesizing, and theorizing. For an inexact science such as management, however, the starting point
may well be that of developing principles based on observation and experience. Through scientific
investigation, one can then seek to prove or disprove them. Although such procedures lack the accurate
predictability of those in the physical science, the lessons learned from experience, experimentation, and
observation are still superior to using only trial-and-error approach to the practice of management.
:::::::
Since management is needed in all types and sizes of organization ,at all organizational levels either
bottom or top , in all organizational areas- marketing, manufacturing, the people have started showing
their genuine interest in improving the way organizations are managed. Organizations that are well
managed develops a loyal customer base and increase in revenue whereas the organization that are poorly
and carelessly managed finds themselves with a declining customer base and reduced revenue.
With the study of management and achieving broader management knowledge one can easily be able to
recognize poor management and work harder to get it corrected. Poor management is most often due to
both inefficiency and ineffectiveness. On the other hand on can also be able to recognize good
management and encourage it. In successful organization , high efficiency and effectiveness typically go
hand in hand.It does not matter whether we are working as a manager or employee, the things that matter
 is our presence and interest ,hard work as well interest in achieving organizational goals with full
efficiency and effectiveness.
All the activities involved in managing an enterprise are common to all organization whether economic,
social or political. The managers however, does all the plannings , organizing in the same way but the
way of doing the job may differ, the difference may be due to difference in culture,tradition and history.
::::
Page | 22 Q#4: Explain the universality of management concept. Does it hold true in today’s world? Why?A:
universality of management refers to its principles, techniques, functions and skills from one time, place
or job to another. All these management practices are equally and applicable everywhere in the
world.These techniques and functions can be practiced in every organized effort, whether it is a business,
shop, or industry, govt, social or educational. A successful manager of a company or afield can be equally
successful in the other.Q#5: Is business management a profession? Why or why not?A: Because
managers hold a status in society similar to that of doctors and lawyers, it is natural to think of business as
a profession and of business schools as professional schools. Although business schools might be able to
reach consensus on what they should teach, after all successful businesses are commonly run by people
without MBAs. Managers' roles are inherently general, variable, and indefinable; their core skill is to
integrate across functional areas, groups of people, and circumstances. Thus business education must be
highly collaborative and learning must differ according to the stage of a student's career. Business schools
are not professional schools. They are incubators for business leadership.Q#6: is there one best “STYLE”
of management? Why or why not?A: it would be difficult to say that there is “best” style since we are
dealing with interpersonal relation here there a lot of difference a lot.1.You have the manger as people
they have certainty personality and skins that naturally lead them to certain style of leadership.2.There are
those being managed. A good manager often uses different style with different employees.3.The work
place and type of work might call for different style while the manager of a team might able to use a style
to lead his or her team.Q#7: Does the way that contemporary organizations are structured appeal to you?
Why or why not?A:Yes, because a strict organization as represented in the traditional organizations puts a
barrier in responding to the rapidly changing environments. Contemporary organizational structures
consist of the matrix, lattice, virtual and networked organizations. But we will only discussmatrix
organizations.Matrix organizationscross a traditional functional structure with a product structure.
Specifically, employees reporting to departmentmanagers are also combined together to form project or
product teams. As a result, each person reports to a department manager as well as a project or product
manager. a company may utilize a matrix structure to balance the benefits of product-based and
traditional functional structures.Q#8: In today’s environment, which is more important to organizations-
efficiency or effectiveness? Explain.
H .Nature of Management
Universal Process: Wherever there is human activity, there is management. Without efficient
management, objectives of the company can not be achieved.
Factor of Production: Qualified and efficient managers are essential to utilization of labor and capital.
Goal Oriented: The most important goal of all management activity is to accomplish the objectives of an
enterprise. The goals should be realistic and attainable.
Supreme in Thought and Action: Managers set realizable objectives and then mastermind action on all
fronts to accomplish them. For this, they require full support form middle and lower levels of
management.
Group activity: All human and physical resources should be efficiently coordinated to attain maximum
levels of combined productivity. Without coordination, no work would accomplish and there would be
chaos and retention.
Dynamic Function: Management should be equipped to face the changes in business environment brought
about by economic, social, political, technological or human factors. They must be adequate training so
that can enable them to perform well even in critical situations.
 Social Science: All individuals that a manager deals with, have different levels of sensitivity,
understanding and dynamism.
Important Organ of Society: Society influences managerial action and managerial actions influence
society. Its managers responsibility that they should also contribute towards the society by organizing
charity functions, sports competition, donation to NGO’s etc.
System of Authority: Well-defined lines of command, delegation of suitable authority and responsibility
Page | 23 at all levels of decision-making. This is necessary so that each individual should what is expected from
him and to whom he need to report to.
Profession: Managers need to possess managerial knowledge and training, and have to conform to a
recognized code of conduct and remain conscious of their social and human obligations.
Process: The management process comprises a series of actions or operations conducted towards an end.
Scope of Management
Although it is difficult to precisely define the scope of management, yet the following areas are included
in it:

1. Subject-Matter of Management: Planning, organizing, directing, coordinating and controlling are the
activities included in the subject matter of management.
2. Functional Areas of Management: These include:
Financial Management includes accounting, budgetary control, quality control, financial planning and
managing the overall finances of an organization.
Personnel Management includes recruitment, training, transfer promotion, demotion, retirement,
termination, labor-welfare and social security industrial relations.
Purchasing management includes inviting tenders for raw materials, placing orders, entering into
contracts and materials control.
Production Management includes production planning, production control techniques, quality control and
inspection and time and motion studies.
Maintenance Management involves proper care and maintenance of the buildings, plant and machinery.
Transport Management includes packing, warehousing and transportation by rail, road and air.
Distribution Management includes marketing, market research, price-determination, taking market- risk
and advertising, publicity and sales promotion.
Office Management includes activities to properly manage the layout, staffing and equipment of the
office.
Development Management involves experimentation and research of production techniques, markets, etc.
3. Management is an Inter-Disciplinary Approach: For the correct implementation of the management,
it is important to have knowledge of commerce, economics, sociology, psychology and mathematics.
4. Universal Application: The principles of management can be applied to all types of organizations
irrespective of the nature of tasks that they perform.
5. Essentials of Management: Three essentials of management are:
Scientific method
Human relations
Quantitative technique
6. Modern Management is an Agent of Change: The management techniques can be modified by
proper research and development to improve the performance of an organization.
:::::::::::::::::::::
Management: Definitions, Concept, Objectives and Scope
Management: Definitions, Concept, Objectives and Scope!
The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning,
organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a
function of managing people. It is also referred to as a body of knowledge, a practice and discipline.
There are some who describe management as a technique of leadership and decision-making while some
 others have analyzed management as an economic resource, a factor of production or a system of
authority.
Definitions: Various definitions of management are discussed as follows:

(A) Art of Getting Things Done:

Mary Parker Follett:
Page | 24 “Management is the art of getting things done through others.” Follett describes management as an
art of directing the activities of other persons for reaching enterprise goals. It also suggests that a
manager carries only a directing function.
Harold Koontz:
“Management is the art of getting things done through and with people in formally organized
groups.” Koontz has emphasized that management is getting the work done with the co-operation
of people working in the organization.
J.D. Mooney and A.C. Railey:
“Management is the art of directing and inspiring people.” Management not only directs but
motivates people in the organization for getting their best for obtaining objectives.
As per the above mentioned definitions, management is the art of getting things done through people who
may be managers or non-managers. At the level of chief executive, the work is got done through
functional managers, at middle level the things are implemented through supervisors and at lower level of
management through workers. Human and technical skills play an important role for getting things done.
These definitions represent the traditional view point of management while workers are treated as a factor
of production only. They are paid wages for doing their work.
This view point suffers from the following deficiencies:
(i) This concept does not specify what type of functions is required to be performed for getting things
done from others.
(ii) Management is treated as an art. These days management has also acquired the status of science.
(iii) The workers are treated as means of getting results. The needs and aspirations of workers are not
taken into account.
Management is much more than just getting the things done through others. Management may be a
technique for getting things done through others by satisfying their needs and helping them grow. Harold
Koontz emphasized the attainment of business goals with the co-operation of people working in the
organization.
(B) Management as a Process:
Some authors view management as a process because it involves a number of functions. Management
refers to all Involves different a manager does. Various functions which are performed by managers to
make the efficient use of the available material and human resources so as to achieve the desired
objectives are summed up as management. Thus, the functions of planning, organizing, staffing, directing,
co-coordinating and controlling fall under the process of management.
Henry Fayol:

“To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control.” Fayol
described management as a process of five functions such as planning, organizing, commanding,
coordinating and controlling. Modern authors, however, do not view co-ordination as a separate
function of management.
George R. Terry:
“Management is a distinct process consisting of activities of planning, organizing, actuating and
controlling, performed to determine and accomplish stated objectives with the use of human beings and
other resources.” Though Terry has described four functions to be a part of management process but
managerial functions are classified into five categories.
 James L. Lundy:
“Management is principally the task of planning, coordinating, motivating and controlling the efforts of
others towards a specific objective.” Lundy has also specified some functions which management has to
perform for achieving organizational goals.
Louis Allen:
“Management is what a manager does.” This is a broad definition linking all the activities of the manager
Page | 25 to the concept of management. Whatever work is undertaken by a manager forms a part of management.
Above definitions associate management with the functions undertaken for running a business. There may
be a difference as to what functions are required to be taken up by the management but functions such as
planning, organizing, staffing, directing and controlling form the process of management.
These functions are continuously taken up. On the completion of last function, the first function starts
again. The functions of management are interdependent and interlinked. In order to achieve the
objectives, a manager has to perform various functions simultaneously.
(C) Management as a Discipline:
Sometimes the term ‘management’ is used to connote neither the activity nor the personnel who performs
it, but as a body of knowledge, a practice and a discipline. In this sense, management refers to the
principles and practices of management as a subject of study. Management is taught as a specialized
branch of knowledge in educational institutions. It has drawn heavily from Psychology, Sociology, and
Anthropology etc. A person acquiring degree or diploma in management can try for a managerial job.
Management is treated both as an art as well as science. An art is often regarded as the systematic
application of skill or knowledge in effecting accomplishment of results. In management one has to use
personal skill and knowledge in solving many complicated problems to achieve enterprise objectives.
Management is regarded as a science because it has developed certain principles, generalizations and
techniques which have more or less universal application. So management is a study of a specific
discipline. When one says that a particular person is in management stream then it is assumed that he is
studying a particular field of learning.
(D) Art and Science of Decision-Making and Leadership:
Decision-making and guiding others is considered an important element of management. A manager has
to take various decisions every day for properly running an enterprise.
Donald J. Clough:
“Management is the art and science of decision-making and leadership.” The author views management
as an art and science of decision-making. The quality of decisions determines the performance of a
manager. He has also to provide leadership to subordinates for motivating them to undertake their work.
Rose Moore:
“Management means decision-making.” Decision-making cannot be the only function of management
even though it is very important.
Stanley Vance:
“Management is simply the process of decision-making and control over the action of human beings for
the express purpose of attaining pre­determined goals.” Stanley Vance has emphasized decision-making
and control over the actions of employees for reaching the enterprise goals.
Association of Mechanical Engineers, U.S.A.: “Management is the art and science of preparing,
organizing and directing human efforts applied to control the forces and utilize the materials of nature for
the benefit of man.” The association has given a wide definition where it has emphasized that
management controls and directs human efforts for utilizing natural resources for the benefit of man. The
above mentioned definitions describe management as a science and art of decision making and controlling
the activities of employees for obtaining enterprise objectives.
(E) An Art of Increasing Productivity:
Some authors are of the view that the science of management is used to increase productivity of the
enterprise.
 John F. Mee:
“Management may be defined as the art of securing maximum prosperity with a minimum of effort so as
to secure maximum prosperity and happiness for both employees and employer and give public the best
possible service.”
F.W. Taylor:
“Management is the art of knowing what you want to do in the best and cheapest way.”
Page | 26 Management is the art of securing maximum productivity at the minimum of cost so that it helps
employers, employees and public in general. Public is also a stake holder in business, it should also
benefit from good performance of business.
(F) Integration of Efforts:
Management makes use of human and physical resources for the benefit of the enterprise.
Keith and Gubellini:
“Management is the force that factors integrates men and physical plant into an effective operating unit.”
Management integrates physical and human resources for operating the manufacturing process in a better
way.
Barry M. Richman:
“Management entails the co­ordination of human and material resources towards the achievement of
organizational objectives as well as the organization of the productive functions essential for achieving
stated or accepted economic goals.” Management alms to co-ordinate and integrate various resources in
the organization for achieving enterprise objectives. The thrust of above mentioned definitions is that
integration and co-ordination of various factors of production is essential for running a business properly
and this function is undertaken by management.
(G) Management as a Group of Managers:
The term management is frequently used to denote a Refers to managerial group of managerial personnel.
When one says that personnel management of such and such company is efficient, he refers to the group
of persons who are looking after the working of the enterprise. These persons individually are called
managers. “Management is the body or group of people which performs certain managerial functions for
the accomplishment of pre-determined goals.”
All managers perform managerial functions of planning, organizing, staffing, directing and controlling.
These persons collectively arc called ‘body of managerial personnel.’ In actual practice the term
‘management’ is used to denote top management of the organization. Top management is mainly
concerned with determination of objectives, strategic planning, policy formulation and overall control of
the organization.

Objectives of Management:
The primary objective of management is to run the enterprise smoothly. The profit earning objective of a
business is also to be kept in mind while undertaking various functions.
Following are the broad objectives of management:
1. Proper Utilization of Resources:
The main objective of management is to use various resources of the enterprise in a most economic way.
The proper use of men, materials, machines and money will help a business to earn sufficient profits to
satisfy various interests. The proprietors will want more returns on their investments while employees,
customers and public will expect a fair deal from the management. All these interests will be satisfied
only when physical resources of the business are properly utilized.
2. Improving Performance:
Management should aim at improving the performance of each and every factor of production. The
environment should be so congenial that workers are able to give their maximum to the enterprise. The
fixing of objectives of various factors of production will help them in improving their performance.
 3. Mobilizing Best Talent:
The management should try to employ persons in various fields so that better results are possible. The
employment of specialists in various fields will be increasing the efficiency of various factors of
production. There should be a proper environment which should encourage good persons to join the
enterprise. The better pay scales, proper amenities, future growth potentialities will attract more people in
joining a concern.
Page | 27
4. Planning for Future:
Another important objective of management is to prepare plans. No management should feel satisfied
with today’s work if it has not thought of tomorrow. Future plans should take into consideration what is to
be done next. Future performance will depend upon present planning. So, planning for future is essential
to help the concern.

Scope or Branches of Management:

Management is an all pervasive function since it is required in all types of organized endeavour. Thus, its
scope is very large.
The following activities are covered under the scope of management:

(i) Planning,
(ii) Organization
(iii) Staffing.
(iv) Directing,
(v) Coordinating, and
(vi) Controlling.
The operational aspects of business management, called the branches of management, are as follows:
1. Production Management
2. Marketing Management
3. Financial Management.
4. Personnel Management and
5. Office Management.
1. Production Management:
Production means creation of utilities. This creation of utilities takes place when raw materials are
converted into finished products. Production management, then, is that branch of management ‘which by
scientific planning and regulation sets into motion that part of enterprise to which has been entrusted the
task of actual translation of raw material into finished product.’
It is a very important field of management ,’for every production activity which has not been hammered
on the anvil of effective planning and regulation will not reach the goal, it will not meet the customers and
ultimately will force a business enterprise to close its doors of activities which will give birth to so many
social evils’.
Plant location and layout, production policy, type of production, plant facilities, material handling,
production planning and control, repair and maintenance, research and development, simplification and
standardization, quality control and value analysis, etc., are the main problems involved in production
management.
2. Marketing Management:
Marketing is a sum total of physical activities which are involved in the transfer of goods and services and
which provide for their physical distribution. Marketing management refers to the planning, organizing,
directing and controlling the activities of the persons working in the market division of a business
enterprise with the aim of achieving the organization objectives.
It can be regarded as a process of identifying and assessing the consumer needs with a view to first
converting them into products or services and then involving the same to the final consumer or user so as
to satisfy their wants with a stress on profitability that ensures the optimum use of the resources available
 to the enterprise. Market analysis, marketing policy, brand name, pricing, channels of distribution, sales
promotion, sale-mix, after sales service, market research, etc. are the problems of marketing management.
3. Financial Management:
Finance is viewed as one of the most important factors in every enterprise. Financial management is
concerned with the managerial activities pertaining to the procurement and utilization of funds or finance
for business purposes.
Page | 28 The main functions of financial management include:
(i) Estimation of capital requirements;
(ii) Ensuring a fair return to investors;
(iii) Determining the suitable sources of funds;
(iv) Laying down the optimum and suitable capital
Structure for the enterprise:
(i) Co-coordinating the operations of various departments;
(ii) Preparation, analysis and interpretation of financial statements;
(iii) Laying down a proper dividend policy; and
(iv) Negotiating for outside financing.
4. Personnel Management:
Personnel Management is that phase of management which deals with the effective control and use of
manpower. Effective management of human resources is one of the most crucial factors associated with
the success of an enterprise. Personnel management is concerned with managerial and operative
functions.
Managerial functions of personnel management include:
(i) Personnel planning;
(ii) Organizing by setting up the structure of relationship among jobs, personnel and physical factors to
contribute towards organization goals;
(iii) Directing the employees; and
(iv) Controlling.
The operating functions of personnel management are:
(i) Procurement of right kind and number of persons;
(ii) Training and development of employees;
(iii) Determination of adequate and equitable compensation of employees;
(iv) Integration of the interests of the personnel with that of the enterprise; and
(v) Providing good working conditions and welfare services to the employees.
5. Office Management:
The concept of management when applied to office is called ‘office management’. Office management is
the technique of planning, coordinating and controlling office activities with a view to achieve common
business objectives. One of the functions of management is to organize the office work in such a way that
it helps the management in attaining its goals. It works as a service department for other departments.
The success of a business depends upon the efficiency of its administration. The efficiency of the
administration depends upon the information supplied to it by the office. The volume of paper work in
office has increased manifold in these days due to industrial revolution, population explosion, increased
interference by government and complexities of taxation and other laws.
Harry H. Wylie defines office management as “the manipulation and control of men, methods, machines
and material to achieve the best possible results—results of the highest possible quality with the
expenditure of least possible effect and expense, in the shortest practicable time, and in a manner
acceptable to the top management.”
:::::::::::::
What is Nature and Scope of Management
Management consists of a series of interrelated functions that are performed by all managers. Let’s
understand the Nature and Scope of management.
 Nature and Scope of Management
Nature of Management
Universality: It is a universal phenomenon in the sense that it is common and essential in all enterprises.
The principles of management can be applied in all managed situations regardless of size, nature and
locations of organisation. Universality also implies that managerial skills are transferable and managers
can be trained and developed.
Page | 29 Purposeful: it is always aimed at achieving organisation goals and purposes. The success of management
is measured by the extent to which desired objectives are attained. The tasks of management are directed
towards effectiveness and efficiency.
Social Process: It involves managing people organized in work groups. It involves retaining, developing
and motivating people at work as well as taking care of their satisfaction as social beings.
Coordinating Force: It coordinates the efforts of organizational members through elderly arrangement of
inter-related activities to avoid duplication of efforts.
Intangible: It is intangible. Its presence can be felt by outcomes of its efforts in the form of orderly,
adequate, work output, employee satisfactions etc.
Continuous Process: It is an ongoing process. The cycle of management continues as long as there is
existence of organisation.
Composite Process: Management is a composite process made up of individual components. All the
functions are performed by several components in orderly fashion.
Creative Organ: Management creates synergy by producing results which are more than the sum of
individual efforts of group members. It provides creative ideas, new imagination and vision to group
efforts.
I .Is management a science or an art?
Management can be considered as both science as well as an art.
Management is science because of several reasons like - it has universally accepted principles, it has
cause and effect relationship etc, and at the same time it is art because it requires perfection through
practice, practical knowledge, creativity, personal skills etc.
Management is both an art and a science. Management combines features of both science as well as art. It
is considered as a science because it has an organized body of knowledge which contains certain universal
truth. It is called an art because managing requires certain skills which are personal possessions of
managers. Science provides the knowledge & art deals with the application of knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science & the art of applying
it. Therefore management is a judicious blend of science as well as an art because it proves the principles
and the way these principles are applied is a matter of art. Science teaches to ‘know’ and art teaches to
‘do’. E.g. A person cannot become a good singer unless he has knowledge about various ragas & he also
applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the
principles but he must also apply them in solving various managerial problems that is why, science and
art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and
butter etc.).
The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been
aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that
science is the root and art is the fruit.
Management As Science
Yes,Science is a systematic body of knowledge pertaining to a specific field of study that contains general
facts which explains a phenomenon. It establishes cause and effect relationship between two or more
variables and underlines the principles governing their relationship. These principles are developed
through scientific method of observation and verification through testing. Science is characterized by the
following main features:
1.Universally acceptance principles – Scientific principles represents basic truth about a particular field
of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. – law of
 gravitation which can be applied in all countries irrespective of the time. Management also contains some
fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one
man, one boss. This principle is applicable to all type of organization – business or non business.
2.Experimentation & Observation – Scientific principles are derived through scientific investigation &
researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been
scientifically proved. Management principles are also based on scientific enquiry & observation and not
Page | 30 only on the opinion of Henry Fayol. They have been developed through experiments & practical
experiences of large number of managers. E.g. it is observed that fair remuneration to personal helps in
creating a satisfied work force.
3.Cause & Effect Relationship – Principles of science lay down cause and effect relationship between
various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is
expansion. The same is true for management, therefore it also establishes cause and effect relationship.
E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know
the cause i.e. lack of balance, the effect can be ascertained easily -in effectiveness. Similarly if workers
are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces
productivity of organization.
4.Test of Validity & Predictability – Validity of scientific principles can be tested at any time or any
number of times. They stand the test of time. Each time these tests will give same result. Moreover future
events can be predicted with reasonable accuracy by using scientific principles. E.g. hydrogen & oxygen
will always give water. Principles of management can also be tested for validity. E.g. principle of unity of
command can be tested by comparing two persons – one having single boss and one having 2 bosses. The
performance of 1st person will be better than 2nd. It cannot be denied that management has a systematic
body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and
chemistry etc. The main reason for the inexactness of science of management is that it deals with human
beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it
falls in the area of social sciences. It is a flexible science & that is why its theories and principles may
produce different results at different times and therefore it is a behavior science. Ernest Dale has called it
as a Soft Science.
Management as Art
Art implies application of knowledge & skill to trying about desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art has the
following characters – 1. Practical Knowledge: Every art requires practical knowledge therefore
learning of theory is not sufficient. It is very important to know practical application of theoretical
principles. E.g. to become a good painter, the person may not only be knowing different colour and
brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never
be successful just by obtaining degree or diploma in management; he must have also know how to apply
various principles in real situations by functioning in capacity of manager. 2. Personal Skill:
Although theoretical base may be same for every artist, but each one has his own style and approach
towards his job. That is why the level of success and quality of performance differs from one person to
another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly
management as an art is also personalized. Every manager has his own way of managing things based on
his knowledge, experience and personality, that is why some managers are known as good managers (like
Aditya Birla, Rahul Bajaj) whereas others as bad. 3. Creativity: Every artist has an element of
creativity in line. That is why he aims at producing something that has never existed before which
requires combination of intelligence & imagination. Management is also creative in nature like any other
art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to
produce sweet music by combining chords in an efficient manner. 4. Perfection through practice:
Practice makes a man perfect. Every artist becomes more and more proficient through constant practice.
Similarly managers learn through an art of trial and error initially but application of management
principles over the years makes them perfect in the job of managing. 5. Goal-Oriented: Every art is
 result oriented as it seeks to achieve concrete results. In the same manner, management is also directed
towards accomplishment of pre-determined goals. Managers use various resources like men, money,
material, machinery & methods to promote growth of an organization. Thus, we can say that management
is an art therefore it requires application of certain principles rather it is an art of highest order because it
deals with moulding the attitude and behavior of people at work towards desired goals. 6. Work by
effectively. manager manage all problem in every environment so this is not science, it is an art that how
Page | 31 he manage every problem of organization in every environment.
Management as both Science and Art
Management is both an art and a science. The above mentioned points clearly reveals that management
combines features of both science as well as art. It is considered as a science because it has an organized
body of knowledge which contains certain universal truth. It is called an art because managing requires
certain skills which are personal possessions of managers. Science provides the knowledge & art deals
with the application of knowledge and skills. A manager to be successful in his profession must acquire
the knowledge of science & the art of applying it. Therefore management is a judicious blend of science
as well as an art because it proves the principles and the way these principles are applied is a matter of art.
Science teaches to ’know’ and art teaches to ’do’. Example. a person cannot become a good singer unless
he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way
it is not sufficient for manager to first know the principles but he must also apply them in solving various
managerial problems that is why, science and art are not mutually exclusive but they are complementary
to each other (like tea and biscuit, bread and butter etc.). The old saying that “Manager are Born” has
been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest
of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.
Management as Profession
A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a profession
are:
1.Specialized Knowledge – A profession must have a systematic body of knowledge that can be used for
development of professionals. Every professional must make deliberate efforts to acquire expertise in the
principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise
in the science of management.
2.Formal Education & Training – There are no. of institutes and universities to impart education &
training for a profession. No one can practice a profession without going through a prescribed course.
Many institutes of management have been set up for imparting education and training. For example, a CA
cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum
qualifications and a course of study has been prescribed for managers by law. For example, MBA may be
preferred but not necessary.
3.Social Obligations – Profession is a source of livelihood but professionals are primarily motivated by
the desire to serve the society. Their actions are influenced by social norms and values. Similarly a
manager is responsible not only to its owners but also to the society and therefore he is expected to
provide quality goods at reasonable prices to the society.
4.Code of Conduct – Members of a profession have to abide by a code of conduct which contains certain
rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a
representative association to ensure self discipline among its members. Any member violating the code of
conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of
conduct for managers but it has no right to take legal action against any manager who violates it.
5.Representative Association – For the regulation of profession, existence of a representative body is a
must. For example, an institute of Charted Accountants of India establishes and administers standards of
competence for the auditors but the AIMA (Alternative Investment Management Association) however
does not have any statuary powers to regulate the activities of managers. From above discussion, it is
 quite clear that management fulfills several essentials of a profession, even then it is not a full fledged
profession because: -
a.It does not restrict the entry in managerial jobs for account of one standard or other.
b.No minimum qualifications have been prescribed for managers.
c.No management association has the authority to grant a certificate of practice to various managers.
d.All managers are supposed to abide by the code formulated by AIMA,
Page | 32 e.Competent education and training facilities do not exist. .
f.Managers are responsible to many groups such as shareholders, employees and society. A regulatory
code may curtail their freedom.
g.Managers are known by their performance and not mere degrees.
h.The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes has
rightly remarked, “The slogan for management is becoming – ’He who serves best, also profits most’.”
i think management is more of art than science.it is the accumulated knwoledge which comprises science.
through exastive aquentence with manag
:::::::::
regarding to the previous and present data that has been collected, assessing them and the connection of
such data so as to forecast upcoming circumstances.
Management is a combination of both an art and a science
It is believed that management could be more effective if there is a combination of an art and a science.
“Effective managing happens where art, craft, and science meet” (Mintzberg 2004, p.10). He also
mentioned that by “putting together a good deal of craft with a certain amount of art and some science,
and you end up with a job that is above all a practice and there is no ‘one best way’ to manage; it all
depends on the situation” (Mintzberg 2004, p.10). Management is needed for managers to make decisions
not just based on theories and evidences they have learned in the past, but combined with their intuitions,
judgements, and ‘gut feelings’.
Management is basically a collaboration with the people to determine, interpret and achieve the objectives
of the organisation with the performance of the functions of planning, organising, directing, and
controlling. In order to do so, managers not just need to 'oversee individuals', they need to oversee
themselves, as well. In fact, managers are only human being as well as their employees whom they seek
to influence. Managers nowadays are demanded to study and absorb every management theories made by
different scholars, because managers could decide the most suitable theory to handle with specific
conditions. In addition, managers could only blend and utilise theories that are best suited to deal with
issues and approaches that illustrates the position and role of management now and in the future. It is
similar to Watson (1986, p.14) have been argued as cited in Watson (2001, p.166), he said that:
“Most human actions – including many of those which have become almost habitual – are informed by
ideas of one thing connects with another or how on event or action leads to another.
These, in effect, are theories and, in this sense, poor practice is likely to follow from poor people.”
To some extent, how smartly we manage any kind of work is an art, while the knowledge required to do
that work is a science. For example, Mark Zuckerberg, CEO of Facebook, who did something that was
very fundamental. He had the knowledge to do the work and the art to discover what the company needed
to focus with, which was photos. He had noticed that people were changing their profile every day,
therefore, he decided to focus on that particular issue that there was very strong demand for people to
share more photos (Geron 2012). Robert L Katz (1955) as cited in Northouse (2012, p.44) has been an
eloquent proponent of management as an art and a science. He explained that every manager requires
three basic skills. Firstly, managers need to have the expertise to create notions and ideas for the
improvement of the organisation, which is called conceptual skills. Those concepts and ideas are next be
interpreted into an action plan to be implemented, which the process of elaboration of ideas into a tangible
plan is generally mentioned to as the process of planning. For that reason, conceptual skills is likewise a
skill to create the plan work. Secondly, managers correspondingly need to be prepared with the skills of
communication or the skills to relate to others, which is called humanity skills. Humanity skills involve
the ability to interact with other people effectively, where managers cooperate and interact with their
 personnel. Managers having a persuasive communication, friendship, and fatherhood to their personnel
will get better appreciation and respect, which leads to better achievements on the organisation’s goals.
Thirdly, managers should have technical skills. It deals with things and the ability to perform a particular
job, for example, using a computer program, repairing a machine, making chairs, accounting, etc. “Even
though effective
Page | 33 managers must be skilled at responding rapidly to various and changing issues, the peril in managerial
work is that they will react to each issue equally (and that means abruptly) and that they will never work
the tangible bits and pieces of enlightening data into a complete picture of their world” (Mintzberg 1989,
p.23).
Conclusion
Management is no doubt a judicious mixture of scientific and artistic approaches. It is considered an art in
the light of the fact that managing needs particular skills that are personal possessions of managers. It is
called as a science as it has an arranged knowledge’s body that comprehends particular entire facts.
Science offers the knowledge and art deals with the use of knowledge and skills. A manager to be
successful in his job have to attain the knowledge of science and the art of utilising it. For that reason,
management considered as a well-judged mix of an art together with a science as it demonstrates the
principles and the way these standards are connected is an issue of an art. Science educates to
‘understand’ and art instructs to ‘act’, such as, a man could not turn into a great lead singer except he has
the knowledge on numerous songs and he in like manner utilises his own particular abilities in the art of
singing. Similarly, it is insufficient for a manager to first knowing the principles yet he be supposed to
likewise utilise them for coping numerous management issues, which is the reason that art and science are
not fundamentally unrelated rather they are reciprocal to one another. To sum up, we can say that science
is the root and art is the fruit.
J .Five Functions of Management (Fayol)
Five functions of management - ToolsHero
This article explains the administrative theory of the Five Functions of Management by Henri Fayol in a
practical way. After reading you will understand the basics of these powerful principles of management.
The Five Functions of Management are:
Planning
Organizing
Commanding
Coordinating
Controlling
Introduction of the Five Functions of Management
At the beginning of the last century (1916) the French engineer Henri Fayol created the first principles of
management theory. Henri Fayol is classified as the founding father of for example the line and staff
organization. Based on his experience as a successful director or a mining company, he developed several
theories that are still relevant today. At the time, managers had no formal training. However, the
increasing complexity of organizations created a need for professional management.
Five Functions of Management
Henri Fayol gained world-wide fame for his 14 general principles of management. He distinguished six
general activities for industrial enterprises: technical, commercial, financial, security, accounting and
managerial. He defined five functions of management for the management component and these are still
seen as relevant to organizations today. These five functions focus on the relationship between personnel
and its management and they provide points of reference so that problems can be solved in a creative
manner.
Five functions of management model by Henri Fayol - ToolsHero
 1. Planning
Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the hardest of
the five functions of management. This requires an active participation of the entire organization. With
respect to time and implementation, planning must be linked to and coordinated on different levels.
Planning must take the organization’s available resources and flexibility of personnel into consideration
Page | 34 as this will guarantee continuity.
2. Organizing
An organization can only function well if it is well-organized. This means that there must be sufficient
capital, staff and raw materials so that the organization can run smoothly and that it can build a good
working structure. The organizational structure with a good division of functions and tasks is of crucial
importance. When the number of functions increases, the organization will expand both horizontally and
vertically. This requires a different type of leadership. Organizing is an important function of the five
functions of management.
3. Commanding
When given orders and clear working instructions, employees will know exactly what is required of them.
Return from all employees will be optimized if they are given concrete instructions with respect to the
activities that must be carried out by them. Successful managers have integrity, communicate clearly and
base their decisions on regular audits. They are capable of motivating a team and encouraging employees
to take initiative.
4. Coordinating
When all activities are harmonized, the organization will function better. Positive influencing of
employees behaviour is important in this. Coordination therefore aims at stimulating motivation and
discipline within the group dynamics. This requires clear communication and good leadership. Only
through positive employee behaviour management can the intended objectives be achieved.
5. Controlling
By verifying whether everything is going according to plan, the organization knows exactly whether the
activities are carried out in conformity with the plan.
Control takes place in a four-step process:
Establish performance standards based on organizational objectives
Measure and report on actual performance
Compare results with performance and standards
Take corrective or preventive measures as needed
It starts with an overview
Each of these steps is about solving problems in a creative manner. Finding a creative solution is often
more difficult than discovering what the problem is, than making choices or the decision-making process.
It starts with creating an environmental analysis of the organization and it ends with evaluating the results
of the implemented solution.
Fayol’s Sixth Function
The sixth function of Henri Fayol is mostly managerial. This include activities like planning, organising,
commanding, coordinating and controlling.
Although well understood in their own right, none of the first five of these functions takes account of
drawing up a broad plan of where the business is going and how it will operate, organising people,
coordinating all of the organisation’s efforts and activities, and monitoring to check that what is planned
is actually carried out.
Fayol’s sixth function acts as an overall function in relation to the five functions.
Five Functions of Management : A Closer look at organizing
As one of the five functions of management, Henri Fayol divided “organizing” into five subcategories.
These first five functions of management are still important in organizations today. The first of the five
functions of management, Henri Fayol mentioned was “specialization”; if every employee is allowed to
use their individual skills this will be advantageous to their area of expertise. Secondly he mentioned
 “unity of command”, in which an employee is answerable to one manager only. The “formal chain of
communication” is linked to this so that the employee will know how and with whom they will have to
communicate. The fourth category is “unity of direction”; all employees must be aware of the
organization’s strategic objectives. The fifth category is “authority and responsibility” in which managers
have the authority to give orders.
It’s Your Turn
Page | 35 What do you think? Are these five functions of management applicable in today’s management? Has
leadership changed on these points?
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The main managerial functions are:
i) Planning: It includes laying down policies, procedures, rules, programs after setting goals and
objectives to achieve them.
ii) Organizing: organization of tasks is done by dividing activities, assigning duties and delegating
authorities.
iii) Staffing: it is the process of putting the right person at the right job.
iv) Directing: directing the people in order to achieve pre-determined goals and objectives.
v) Controlling: Managers control the performance of work by setting performance standards.
::::::::::::::::
Managerial Functions: Basic Functions That Should Be Performed By a Manger
Regardless of size, nature and type of organization, all the managers have to perform some basic
functions which are as follows:
(a) Planning:
Planning is always the first function performed by every manager. Planning refers to “deciding in advance
what to do, how to do, when to do, and who is going to do it. Planning bridges the gap between where we
stand today and where we want to reach”. Every manager starts with deciding in advance the objectives of
an enterprise and how to accomplish these objectives. Planning is the base of all other functions of
management.
(b) Organising:
After setting up of plans next function of every manager is to organise the activities and establishing an
organisation structure to execute the plan. Setting up organisational structure means deciding the
framework of working how many units and sub-units or departments are needed, how many posts or
designations are needed in each department, how to distribute the authority and responsibility among
different people. Once these decisions are taken an organisational structure gets set up.
(c) Staffing:
Staffing is the third step or function of a manager. It refers to recruiting, selecting, appointing the
employees, assigning them duties, maintaining cordial relations and taking care of grievances of
employees. It also includes training and developing the employees, deciding their remuneration,
promotion, increments, etc., evaluating the performance, maintaining personal records of employees.
(d) Directing:
Once the employees are appointed there is need to instruct them and get the work done. Directing refers
to giving directions or instructions to employees by motivating them, supervising the activities of
employees, communicating with them. Managers act as leaders and guide them to right direction, so
directing function includes, supervising, motivating, communicating and leadership.
(e) Controlling:
This is the last function of managers. In this function managers try to match the actual performance with
the planned performance and if there is no match between both then managers try to find out the reasons
of deviation and suggest corrective measures to come on the path of plan. Controlling functions refer to
all the performance measurements and follow up actions that keep the actual performance on the path of
plan.
Focus of management function at different levels:
 Any person who performs managerial function, i.e., planning organising, staffing, directing and
controlling, is considered as a manager. The focus of different levels is at different functions such as:
i. Top level concentrates on planning and organising.
ii. Middle level keeps their focus on staffing and coordination.
iii. Lower level focus on directing and controlling as they give direction to workers.
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Page | 36
Functions of Management
Management has been described as a social process involving responsibility for economical and effective
planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic
process consisting of various elements and activities. These activities are different from operative
functions like marketing, finance, purchase etc. Rather these activities are common to each and every
manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry, “There are four
fundamental functions of management i.e. planning, organizing, actuating and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”.
Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for
Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But
the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e.
Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but practically
these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the
other & each affects the performance of others. Functions of Management
Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in
advance the most appropriate course of actions for achievement of pre-determined goals. According to
KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in
problem solving & decision making. Planning is determination of courses of action to achieve desired
goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It
is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks,
wastages etc.
Organizing
It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To
organize a business is to provide it with everything useful or its functioning i.e. raw material, tools,
capital and personnel’s”. To organize a business involves determining & providing human and non-
human resources to the organizational structure. Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed
greater importance in the recent years due to advancement of technology, increase in size of business,
complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square
pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial
function of staffing involves manning the organization structure through proper and effective selection,
appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:
 Manpower Planning (estimating man power in terms of searching, choose the person and giving the right
place).
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Page | 37 Promotions & Transfer.
Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in
motion the action of people because planning, organizing and staffing are the mere preparations for doing
the work. Direction is that inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has
following elements:
Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive,
negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.
Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to
ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs
in conformities with the standards. An efficient system of control helps to predict deviations before they
actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary, to correct any
deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of
performance activities of subordinates in order to make sure that the enterprise objectives and plans
desired to obtain them as being accomplished”. Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.
:::::::::::
What Are the Five Managerial Functions?
The five functions of a managerial position include planning, organizing, staffing, coordinating and
controlling. These functions are what distinguish the roles of management from other areas, such as
marketing, finance, and accounting.
Planning is the function that allows management to develop plans needed for the organization to operate
smoothly. Goals are defined in this function, along with the most effective way to reach those goals.
Planning involves communication with all aspects of the company.
Organizing allows management to delegate tasks and responsibilities to employees with the skills
necessary to perform the task assigned. The foundation of any company is the organizational structure.
 Management positions are responsible for staffing. This involves recruiting potential employees to fit the
needs of the company. The main goal behind staffing is to fit the right type of employees in the
appropriate position, promoting success for both the employee and company.
The coordinating function involves implementation of the planning, organizing and staffing functions.
This function is performed in meetings and planning sessions with different department heads.
Management must implement strong communication, supervision and direction in this function.
Page | 38 Control is a function in which management enforces other functions of management to establish high
performance standards. This function identifies problems and solutions that can have an impact on the
overall performance of the company.
:::::::::::::
4 Functions of Management Process: Planning, Organizing, Leading, Controlling
Functions of management is a systematic way of doing things. Management is a process to emphasize that
all managers, irrespective of their aptitude or skill, engage in some inter-related functions to achieve their
desired goals.Planning, organizing, leading, and controlling are the 4 functions of management; which
work as a continuous process. First; managers must set a plan, then organize resources according to the
plan, lead employees to work towards the plan, and finally, control everything by monitoring and
measuring the effectiveness of the plan.
Management process/functions involve 4 basic activities;
Planning and Decision Making – – Determining Courses of Action,
Organizing – Coordinating Activities and Resources,
Leading – Managing, Motivating and Directing People,
Controlling – Monitoring and Evaluating activities.
Four Functions of Management Process
1. Planning and Decision Making – Determining Courses of Action
Looking ahead into the future and predict possible trends or occurrences which are likely to influence the
working situation is the most vital quality as well as the job of a manager.
Planning means setting an organization’s goal and deciding how best to achieve them. Planning is
decision making, regarding the goals and setting the future course of action from a set of alternatives to
reach them.
The plan helps to maintain managerial effectiveness as it works as a guide for the personnel for future
activities. Selecting goals as well as the paths to achieve them is what planning involves.
Planning involves selecting missions and objectives and the actions to achieve them, it requires decision-
making or choosing future courses of action from among alternatives.
In short, planning means determining what the organization’s position and the situation should be at some
time in the future and decide how best to bring about that situation.
Planning helps maintain managerial effectiveness by guiding future activities.
For a manager, planning and decision-making require an ability to foresee, to visualize, and to look ahead
purposefully.
2. Organizing – Coordinating Activities and Resources
Organizing can be defined as the process by which the established plans are moved closer to realization.
Once a manager set goals and develops plans, his next managerial function is organizing human resource
and other resources that are identified as necessary by the plan to reach the goal.
Organizing involves determining how activities and resources are to be assembled and coordinated.
The organization can also be defined as an intentionally formalized structure of positions or roles for
people to fill in an organization.
Organizing produces a structure of relationships in an organization and it is through these structured
relationships that plans are pursued.
Organizing, then, is that part of managing which involves: establishing an intentional structure of roles for
people to fill in the organization.
 It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned to
people who can do the best.
The purpose of an organization structure is to create an environment for the best human performance.
The structure must define the task to be done. The rules so established must also be designed in light of
the abilities and motivations of the people available.
Staffing is related to organizing and it involves filling and keeping filled, the positions in the organization
Page | 39 structure.
This can be done by determining the positions to be filled, identifying the requirement of manpower,
filling the vacancies and training employees so that the assigned tasks are accomplished effectively and
efficiently.
The managerial functions of promotion, demotion, discharge, dismissal, transfer, etc. Are also included
with the broad task “staffing.” staffing ensures the placement of the right person in the right position.
Organizing is deciding where decisions will be made, who will do what jobs and tasks, who will work for
whom, and how resources will assemble.
3. Leading – Managing, Motivating and Directing People
The third basic managerial function is leading it is the skills of influencing people for a particular purpose
or reason. Leading is considered to be the most important and challenging of all managerial activities.
Leading is influencing or prompting the member of the organization to work together with the interest of
the organization.
Creating a positive attitude towards the work and goals among the members of the organization is called
leading. It is required as it helps to serve the objective of effectiveness and efficiency by changing the
behavior of the employees.
Leading involves several deferment processes and activates.
The functions of direction, motivation, communication, and coordination are considered a part of the
leading processor system.
Coordinating is also essential in leading.
Most authors do not consider it a separate function of management.
Rather they regard coordinating as the essence of managership for achieving harmony among individual
efforts towards accomplishing group targets.
Motivating is an essential quality for leading. Motivating is the function of the management process of
influencing people’s behavior based on the knowledge of what cause and channel sustain human behavior
in a particular committed direction.
Efficient managers need to be effective leaders.
Since leadership implies fellowship and people tend to follow those who offer a means of satisfying their
own needs, hopes and aspirations, understandably, leading involves motivation leadership styles and
approaches and communication.
4. Controlling – Monitoring and Evaluating Activities
Monitoring the organizational progress toward goal fulfillment is called controlling. Monitoring progress
is essential to ensure the achievement of organizational goals.
Controlling is measuring, comparing, finding deviation and correcting the organizational activities which
are performed for achieving the goals or objectives. Controlling consists of activities, like; measuring the
performance, comparing with the existing standard and finding the deviations, and correcting the
deviations.
Control activities generally relate to the measurement of achievement or results of actions that were taken
to attain the goal.
Some means of controlling, like the budget for expenses, inspection records, and the record of labor hours
lost, are generally familiar. Each measure also shows whether plans are working out.
If deviations persist, correction is indicated. Whenever results are found to differ from the planned action,
persons responsible are to be identified and necessary actions are to be taken to improve performance.
Thus outcomes are controlled by controlling what people do. Controlling is the last but not the least
important management function process.
 It is rightly said, “planning without controlling is useless”. In short, we can say the controlling enables the
accomplishment of the plan.
All the management functions of its process are inter-related and cannot be skipped.
The management process designs and maintains an environment in which personnel’s, working together
in groups, accomplish efficiently selected aims.
All managers carry out the main functions of management; planning, organizing, staffing, leading and
Page | 40 controlling. But depending on the skills and position on an organizational level, the time and labor spent
in each function will differ.
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14 Principles of Management by Henri Fayol - ToolsHero
This article explains the administrative theory of the 14 Principles of Management by Henri Fayol in a
practical way. After reading you will understand the basics of this powerful management tool.
The 14 principles of Management are:
Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of Individual Interest
Remuneration
The Degree of Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps
History of the 14 principles of Management
In the last century, organizations already had to deal with management in practice. In the early 1900s,
large organizations, such as production factories, had to be managed too. At the time there were only few
(external) management tools, models and methods available.
Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for modern scientific
management. These first concepts, also called principles of management are the underlying factors for
successful management. Henri Fayol explored this comprehensively and, as a result, he synthesized the
14 principles of management. Henri Fayol ‘s principles of management and research were published in
the book ‘General and Industrial Management’ (1916).
14 principles of Management are statements that are based on a fundamental truth. These principles of
management serve as a guideline for decision-making and management actions. They are drawn up by
means of observations and analyses of events that managers encounter in practice. Henri Fayol was able
to synthesize 14 principles of management after years of study.
14 principles of management by Henri Fayol - ToolsHero
1. Division of Work
In practice, employees are specialized in different areas and they have different skills. Different levels of
expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and
professional developments support this. According to Henri Fayol specialization promotes efficiency of
the workforce and increases productivity. In addition, the specialization of the workforce increases their
accuracy and speed. This management principle of the 14 principles of management is applicable to both
technical and managerial activities.
 2. Authority and Responsibility
In order to get things done in an organization, management has the authority to give orders to the
employees. Of course with this authority comes responsibility. According to Henri Fayol, the
accompanying power or authority gives the management the right to give orders to the subordinates. The
responsibility can be traced back from performance and it is therefore necessary to make agreements
Page | 41 about this. In other words, authority and responsibility go together and they are two sides of the same
coin.
3. Discipline
This third principle of the 14 principles of management is about obedience. It is often a part of the core
values of a mission and vision in the form of good conduct and respectful interactions. This management
principle is essential and is seen as the oil to make the engine of an organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual employee should receive orders
from one manager and that the employee is answerable to that manager. If tasks and related
responsibilities are given to the employee by more than one manager, this may lead to confusion which
may lead to possible conflicts for employees. By using this principle, the responsibility for mistakes can
be established more easily.
5. Unity of Direction
This management principle of the 14 principles of management is all about focus and unity. All
employees deliver the same activities that can be linked to the same objectives. All activities must be
carried out by one group that forms a team. These activities must be described in a plan of action. The
manager is ultimately responsible for this plan and he monitors the progress of the defined and planned
activities. Focus areas are the efforts made by the employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have an organization function well,
Henri Fayol indicated that personal interests are subordinate to the interests of the organization (ethics).
The primary focus is on the organizational objectives and not on those of the individual. This applies to
all levels of the entire organization, including the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the smooth running of an organization is
concerned. This management principle of the 14 principles of management argues that the remuneration
should be sufficient to keep employees motivated and productive. There are two types of remuneration
namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus
or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.
8. The Degree of Centralization
Management and authority for decision-making process must be properly balanced in an organization.
This depends on the volume and size of an organization including its hierarchy.
Centralization implies the concentration of decision making authority at the top management (executive
board). Sharing of authorities for the decision-making process with lower levels (middle and lower
management), is referred to as decentralization by Henri Fayol. Henri Fayol indicated that an organization
should strive for a good balance in this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior management (executive
board) to the lowest levels in the organization. Henri Fayol ’s “hierarchy” management principle states
that there should be a clear line in the area of authority (from top to bottom and all managers at all levels).
This can be seen as a type of management structure. Each employee can contact a manager or a superior
in an emergency situation without challenging the hierarchy. Especially, when it concerns reports about
calamities to the immediate managers/superiors.
 10. Order
According to this principle of the 14 principles of management, employees in an organization must have
the right resources at their disposal so that they can function properly in an organization. In addition to
social order (responsibility of the managers) the work environment must be safe, clean and tidy.
11. Equity
Page | 42 The management principle of equity often occurs in the core values of an organization. According to
Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the
organization to do things right. Managers should supervise and monitor this process and they should treat
employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management represents deployment and managing of
personnel and this should be in balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the right staff in the right place. Focus
areas such as frequent change of position and sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees should be allowed to express new
ideas. This encourages interest and involvement and creates added value for the company. Employee
initiatives are a source of strength for the organization according to Henri Fayol. This encourages the
employees to be involved and interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the
involvement and unity of the employees. Managers are responsible for the development of morale in the
workplace; individually and in the area of communication. Esprit de corps contributes to the development
of the culture and creates an atmosphere of mutual trust and understanding.
In conclusion on the 14 Principles of management
The 14 principles of management can be used to manage organizations and are useful tools for
forecasting, planning, process management, organization management, decision-making, coordination
and control.
Although they are obvious, many of these matters are still used based on common sense in current
management practices in organizations. It remains a practical list with focus areas that are based on Henri
Fayol ’s research which still applies today due to a number of logical principles.
It’s Your Turn
What do you think? What are the (14) principles of management of today’s management? Do these
management principles work in every organization or are there exceptions? And if so, what are the
exceptions and what can we learn from them?